NYC Council Focuses on Elderly Fraud Issues.

New York City Council’s Committee on Aging and Public Safety held a joint hearing on October 30th, focusing on discussing the issue of elderly fraud and reviewing related legislation. The purpose of this hearing was to understand the work of the New York City Department for the Aging (DFTA) and the New York City Police Department in this area, reviewing reports of elderly fraud cases and training processes.

According to data, approximately one in ten elderly people in the United States fall victim to identity theft each year, which could mean over 15,000 cases per day. Report rates in New York State are relatively low, with only 42 reports per one thousand elderly individuals, indicating that the actual number of cases could be much higher, with estimated annual losses reaching up to $1.5 billion. Crystal Hudson, Chair of the City Council’s Committee on Aging, emphasized that the elderly are easy targets, as scammers take advantage of their advanced age, cognitive decline, living alone, and limited social relationships, often impersonating government officials or relatives to obtain information and money. She stressed the need for system improvements and advocated for the establishment of a statewide non-profit guardian program to enhance the guardianship system through the establishment of a public fund to compensate guardians, meeting the needs of the local community service.

Lorraine Cortés-Vázquez, Commissioner of the NYC Department for the Aging, pointed out that the elderly population in New York City is rapidly growing, expected to reach 1.8 million by 2030. In 2022, the department signed a memorandum of understanding (MOU) with the NYPD to collaborate in handling cases through the Elderly Crime Victims Resource Center (ECBRC). In the 2024 fiscal year, 1,342 significant theft cases were referred to the resource center through the MOU, highlighting the importance of interdepartmental cooperation.

Cortés-Vázquez shared two cases handled by the resource center. In one case, a 95-year-old woman fell victim to fraud when scammers impersonated Chase Bank employees, tricking her into providing account information and withdrawing $60,000 from her account. Upon realizing the deception, she contacted Chase Bank, but they refused to refund the funds, requiring her to fill out forms through an online process she couldn’t complete on her own. Seeking assistance, she turned to the resource center, which helped her successfully submit an online complaint form, leading to the bank refunding the money.

In another case, another elderly person contacted the resource center through a hotline, believing they were paying their Spectrum bill but instead falling victim to scammers. With assistance from the resource center and the NYPD, they filed a police report and successfully submitted a compensation claim to the New York State Victim Services Office, further aiding in police investigations into fraud cases targeting the elderly.

Councilman Chris Banks shared the story of a constituent whose mother suffers from Alzheimer’s and was scammed over the phone, almost revealing all her children’s information. Now, each of her three children carries over $90,000 in debt. He emphasized the importance of Aging Connect, a contact center that provides information and referrals for elderly people and their families, with a phone number at 212-AGING-NYC (212-244-6469). Additionally, the hotline number for the Elder Abuse Prevention Resource Center is 212-602-3101.

Representatives from the police department and council members also shared various elderly fraud cases, showing the diversity of scams. Joshua Levin, Director of Legislative Affairs for the NYPD, recounted a case where a 67-year-old man was at an ATM, entering his PIN and withdrawing cash when two strangers intentionally bumped into him, causing his card to fall. They then apologized, picked up the card, wiped it clean, and returned it to the man. After a second apology, one quickly departed, while the other remained to offer further apologies. Unaware, the man later discovered his bank account had been emptied when he returned home the next day.

Chair of the Public Safety Committee, Yusef Salaam, introduced a case of Zelle fraud, where scammers, aged between 12 and 22, approached individuals sitting alone in parks under the guise of raising funds for a basketball team. They fabricated sob stories, asking for donations by saying, “Hey, we need to raise funds for our basketball team. We don’t accept cash, do you have PayPal or other payment methods? Just a small donation of $2 will do.” When someone softened and opened their phone, the scammers would then ask to quickly input account information, requesting the individual to hand over their phone. Once they gained control of the phone, they swiftly transferred the victim’s entire account to their own.

Salaam stated that an investigation was immediately launched, successfully tracing the group to New Jersey. With collaboration with the New Jersey police, multiple young individuals involved in the scam were apprehended. This fraud not only involved technology but also exploited mobile applications. They cautioned the elderly never to hand their phone to strangers.

Jason Savino, Assistant Chief of Detectives at the NYPD, recounted a successful case that highlighted the importance of cooperation in combating fraud. A group of 15 Romanian travelers targeted elderly individuals for scams, approaching those wearing jewelry necklaces every other week. They would drive up to the elderly person, have a woman in the back seat of the car approach them: “Hi, you remind me of my grandmother. Can I bless you? I have a blessing for you, this is a necklace.” They would then warmly place the necklace on the person and swiftly remove their genuine necklace.

Savino revealed that these scammers traveled from state to state, with approximately 15 cars each time they moved. They would spend a day in a state before moving on, making tracking incredibly challenging. Despite this, the police succeeded in arresting 25 individuals in New York alone. He stressed that without contacts and a nationwide network, the authorities would struggle to trace these criminals and piece together evidence for arrests.

The hearing lasted over three hours, during which Councilwoman Wenyi Zhu proposed enhancing online payments and out-of-state use restrictions for food stamp cards to protect elderly people unfamiliar with online operations. In response, the Commissioner of the Department for the Aging stated they would collaborate with the Human Resources Administration (HRA) to implement more meticulous preventive measures in specific communities. Overall, the hearing focused on strengthening education and legislation, aiming to effectively combat fraud through multi-departmental cooperation to protect the assets and safety of the elderly.