Elder fraud prevention efforts would get boost under bill from Gov. Kathy Hochul

ALBANY — A new effort seeks to better protect New Yorkers over 60 years old who lost more than $203 million to scams, including $38 million bilked from Long Islanders, in 2023, according to the latest FBI report on elder fraud.

The rising number of scams include sweepstakes, callers pretending to be tech support for computers and TVs, and scammers claiming to work for the government, according to the FBI. 

But a bill proposed by Gov. Kathy Hochul and under consideration in the State Legislature would train bank tellers and other bank employees; investment brokers and advisers; and others dealing with the finances of older New Yorkers, in how to spot exploitation. These financial agents would then be legally empowered to put a hold on suspicious spending and refer the case in question to law enforcement.

The consumers would be notified and the questionable bill or withdrawal could be delayed for 15 days. That delay in payment could be extended another 40 days if there is "continued reasonable belief of exploitation," according to Hochul’s bill.

The bill offers legal protections for workers who initiate a hold to protect a customer or client.

Next week, the Democratic majorities of the Senate and Assembly will release their response to Hochul's budget package, which includes the fraud measure. Negotiations will follow to craft a budget deal that is due by April 1.

The measure is getting a boost from 43 consumer protection groups. They include the AARP, the United Way of Long Island and the Glen Cove Senior Center.

"Scammers are using high-tech tools to target older people for financial fraud schemes, often obtaining personal information through social networking sites and internet searches," Beth Finkel, state director of the AARP, said in a statement.

FBI statistics nationally show the most common elder fraud that is targeted by the state proposal has risen since 2021: Investment fraud tripled; tech support scams rose 32% and personal data breaches rose 18%. 

Supporters say elder fraud not only seeks out consumers who may have issues such as difficulty understanding a slick or complex sales pitch, but that the fraud can worsen depression.

"All too often, by the time we discover elder financial exploitation, it is too late to do much about it," said Karen L. Nicolson of the Center for Elder Law & Justice, based in Buffalo. "Once the funds are removed from the victim’s bank account, that money is gone, either sent to a foreign country, or immediately spent by the perpetrator," she said in a written statement.

Nicholson said the pause that would be allowed under the law would provide time to investigate and keep funds from being taken by fraud.

State lobbying documents don’t identify any formal opposition to the measure.

The New York Banking Association, a lobbyist in the field, didn’t immediately respond to a request for comment.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.