More Data is Needed to Better Address the Financial Exploitation of Older Adults

Elder financial exploitation, the most common form of elder abuse, broadly refers to the illegal use of an older person’s money, property, or other financial resource for personal benefit, profit, or gain. The perpetrator can be a known, trusted person such as a caregiver, or they may be a stranger or imposter. Elder abuse affects at least 10% of older adults each year in the United States.

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. Without this data, addressing financial exploitation in all communities will continue to be a challenge.

Financial exploitation in the U.S. is a growing problem

Financial exploitation continues to grow. AARP research places annual losses for older adults over 60 at a conservative $28.3 billion, of which $20.3 billion is a result of known perpetrators (e.g. family, friends, or caregivers). According to the Financial Crimes Enforcement Network’s (FinCEN) 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+ in the 12-month period ending in June 2023. 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.

Underreporting is likely, making understanding the full scope of the problem difficult. Many instances of elder abuse, which includes financial exploitation, go unreported each year. Perhaps the most prevalently cited study attempting to estimate the impact suggests that one in 23.5 cases go unreported annually.

There are many reasons cases go unreported. Older adults may fear retaliation or losing their independence, or they may have a close attachment to the perpetrator (e.g., a trusted caregiver, such as a family member). Some may struggle with the steps required to report the crime. Additionally, for some in communities with a history of discrimination, fear or distrust of authority, including law enforcement, and fear of further discrimination contribute to a possible unwillingness to come forward.

Data on diverse populations is needed

Beyond the general limitations in reporting, even less is known about the impact of financial exploitation among older adults of various diverse populations. There is a marked lack of research quantifying findings by racial and ethnic group and even fewer research initiatives targeting LGBTQ+ populations, populations with limited English proficiency, and low-income populations.

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. This limited amount of available research suggests the need for more. One issue is that research on racial differences and scam victimization tends to be inconsistent. Some studies find Black older adults are more likely to experience financial exploitation than older white adults, yet similar studies have yet to corroborate this finding. 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. But despite the apparent disparity, little research has been conducted since.

Interventions and prevention strategies depend on better data

Data drives solutions. The lack of information on diverse populations and financial exploitation is a barrier to addressing the issue across all communities. A greater focus on race, ethnicity, LGBTQ+ identity, and other demographic data, particularly in population-based surveys, would not only provide a clearer understanding of financial exploitation but also encourage policymakers and others to tailor prevention and intervention strategies beyond a one-size-fits-all approach to combatting financial exploitation.