Elder financial exploitation (EFE) is a common form of elder abuse that impacts as much as 10% of older Americans each year. But to better combat its growing commonality, more information is needed — particularly for vulnerable communities — according to senior advocacy organization AARP.
“While financial exploitation can occur in any community, gaps in data exist in understanding the impact on older adults within certain communities that historically have been discriminated against,” the organization said in a blog post this week. “Without this data, addressing financial exploitation in all communities will continue to be a challenge.”
Research published by AARP in June 2023 found that losses due to EFE among the 60-and-older population are in the range of $28.3 billion each year. The vast majority of that total — $20.3 billion — comes from known perpetrators like friends, family members or caregivers.
The Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury, provides analysis of elder financial exploitation.
“According to the [FinCEN’s] most recent analysis of reported suspicious activity, perpetrators of financial exploitation stole or attempted to steal more than $27 billion from older adults age 60-plus in the 12-month period ending in June 2023,” AARP’s post explained. “FinCEN’s new annual projection is higher than the entire six-year period from 2013-2019 when FinCEN estimated the total risk of losses or actual losses to be $21.8 billion.”
The figure is likely underreported, which could be due to fear, embarrassment or a lack of understanding of the abuse being committed. In 2011, data from the New York City Department for the Aging estimated that as many as one in 23.5 cases go unreported every year.
But the issue with reliable data is exacerbated by insufficient information from vulnerable communities, AARP contends.
“There is a marked lack of research quantifying findings by racial and ethnic group[s] and even fewer research initiatives targeting LGBTQ+ populations, populations with limited English proficiency, and low-income populations,” AARP said. “Filling some of the data gaps on financial exploitation are population-based surveys on the issue — yet very few current studies include race, ethnic identities, or other identities.”
The lack of information from specialized populations requires dedicated efforts to gather it.
“When researchers in 2010 found that African Americans in Pennsylvania were as much as five times more at risk for financial exploitation, they called for a larger national study,” AARP said. “But despite the apparent disparity, little research has been conducted since.”
