America’s Invisible Epidemic: Preventing Financial Fraud Among Elderly
America’s Invisible Epidemic: Preventing Financial Fraud among Elderly
Yi Yao
San Diego State University
April 8, 2013
America’s Invisible Epidemic: Preventing Financial Fraud among Elderly
Senior citizens have long been the target of financial fraud and material abuse. The fraud can be perpetrated by someone does not know the victim which is classified as consumer fraud or perpetrated by someone who knows the victim. According to the 2010 Investor Protection Trust (IPT) Elder Fraud Survey, more than seven million older Americans already have been victimized by a financial scam. This means one out of every five citizens over the age of 65. (Willis, 2012) In addition, a 2011 MetLife study found the annual financial loss by victims of elder financial abuse is estimated to be at least $2.9 billion dollars. This is a 12 percent increase from the $2.6 billion estimated in 2008. (Willis, 2012) Furthermore, 5 percent of Americans who are 60 and older had been the victim of recent financial exploitation by a family member. 6.5 percent of Americans who are 60 and older were the target of a nonfamily member. This is concluded by a federally funded study based on input from 5,777 older adults conducted for the National Institute of Justice in 2009. (Crary, 2012) All these data showed that financial fraud and material abuse among elderly Americans is getting worse today. This article will review the extent and variety of the frauds, analyze the reason behind such abuses and outline the existing initiatives that would prevent such crimes from happening.
Extent and variety of the fraud
Pascal Goyer, a Canadian who is the master head behind “grandparent scam”, is alleged 23 counts indictment of defrauding elderly Americans in Los Angeles last year. (Eimiller, 2012) Allegedly, Goyer and his co-conspirator would call from a boiler room in Montreal to retired US citizens for wire transfers. They would pose their grandchild is in need of cash to cope with some sort of
Yi Yao
San Diego State University
April 8, 2013
America’s Invisible Epidemic: Preventing Financial Fraud among Elderly
Senior citizens have long been the target of financial fraud and material abuse. The fraud can be perpetrated by someone does not know the victim which is classified as consumer fraud or perpetrated by someone who knows the victim. According to the 2010 Investor Protection Trust (IPT) Elder Fraud Survey, more than seven million older Americans already have been victimized by a financial scam. This means one out of every five citizens over the age of 65. (Willis, 2012) In addition, a 2011 MetLife study found the annual financial loss by victims of elder financial abuse is estimated to be at least $2.9 billion dollars. This is a 12 percent increase from the $2.6 billion estimated in 2008. (Willis, 2012) Furthermore, 5 percent of Americans who are 60 and older had been the victim of recent financial exploitation by a family member. 6.5 percent of Americans who are 60 and older were the target of a nonfamily member. This is concluded by a federally funded study based on input from 5,777 older adults conducted for the National Institute of Justice in 2009. (Crary, 2012) All these data showed that financial fraud and material abuse among elderly Americans is getting worse today. This article will review the extent and variety of the frauds, analyze the reason behind such abuses and outline the existing initiatives that would prevent such crimes from happening.
Extent and variety of the fraud
Pascal Goyer, a Canadian who is the master head behind “grandparent scam”, is alleged 23 counts indictment of defrauding elderly Americans in Los Angeles last year. (Eimiller, 2012) Allegedly, Goyer and his co-conspirator would call from a boiler room in Montreal to retired US citizens for wire transfers. They would pose their grandchild is in need of cash to cope with some sort of
References: Cohen C. M. (2006). Consumer Fraud and the Elderly. Journal of Gerontological Social Work, 46:3-4, 137-144 Crary, D Eimiller, L. (2012, October 26). Alleged operator of "grandparent scam" indicted. Lanham, United States, Lanham: Federal Information & News Dispatch, Inc. Retrieved from http://search.proquest.com/docview/1115387409?accountid=13758 Gulley, B Moore, C. (2012). Elder abuse: The approaching tsunami. Law Enforcement Technology, 39(10), 34-37. Retrieved from http://search.proquest.com/docview/1151119863?accountid=13758 Neighmond, P Obama, B. (2012, June 14). Presidential proclamation -- world elder abuse awareness day, 2012. Retrieved from http://www.whitehouse.gov/the-press-office/2012/06/14/presidential-proclamation-world-elder-abuse-awareness-day-2012 Taylor, S Willis, K. (2012). Kohl to hold hearing to examine ways to prevent elder financial abuse. Lanham, United States, Lanham: Federal Information & News Dispatch, Inc. Retrieved from http://search.proquest.com/docview/1145112533?accountid=13758