Senate Special Committee on Aging Hearing on Stopping Senior Scams
Senate Special Committee on Aging
“Stopping Senior Scams: Developments in Financial Fraud Affecting Seniors”
Wednesday, February 15, 2017
Key Topics & Takeaways
- Senior$afe Act: Ranking Member Bob Casey (D-Pa.) applauded the Committee’s reintroduction of the Senior$afe Act (S.223) to encourage financial institutions to disclose suspected exploitation of seniors and provides protection to appropriately trained staff who are reporting in good faith.
- Multi-Faceted Approach: Ranking Member Casey asked Menio how her aging advocacy group coordinates with both state and federal authorities. Menio affirmed that the collaboration is challenging, but in Pennsylvania, the elder abuse taskforce operates with law enforcement and financial advisors.
- Education Recommendations: Sen. Kirsten Gillibrand (D-N.Y.) requested recommendations for preventing scams that include public participation, such as the CVS cashier or the local bank teller. Deputy Inspector Camus stated that public education is the best way to combat these schemes.
Witnesses
- Philip Hatch, IRS Impersonation Scam Victim
- Tim Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration
- Lois Greisman, Associate Director, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission
- Diane Menio, Executive Director Center for Advocacy for the Rights & Interests of the Elderly
Opening Statements
In her opening statement, Chairman Susan Collins (R-Maine) announced the Committee’s priorities during the 115th Congress as retirement security, biomedical research investments, and financial schemes and scams targeting older Americans. Collins proceeded to state that, “the criminals that continue to pray on our seniors are relentless,” and will stop only when the senior citizen is drained of every penny. She added that the Committee’s long-standing dedication to fighting fraud against seniors is raising awareness and prompting enforcement actions that are making a “real difference.” Collins voiced the importance of educating seniors and their family members about fraud as the stakes are extremely high. Additionally, Collins referenced a Government Accountability Office (GAO) study finding that seniors lose $2.9 billion each year to financial exploitation schemes and scams. She concluded by presenting the Committee’s 2017 anti-fraud resource for seniors, “Fighting Fraud: U.S. Senate Aging Committee Identifies Top 10 Scams Targeting Our Nation’s Seniors.”
Ranking Member Bob Casey (D-Pa.), in his opening statement, reiterated the importance of the Committee’s report detailing the top ten scams targeting the nation’s seniors. He added that the report is based on the experiences of more than 2,200 individuals who contacted the Committee’s Fraud Hotline over the past year. Casey applauded the Committee’s reintroduction of the Senior$afe Act (S.223) to encourage financial institutions to disclose suspected exploitation of seniors and provides protection to appropriately trained staff who are reporting in good faith.
Testimony
Philip Hatch, IRS Impersonation Scam Victim
In his testimony, 81-year old Philip Hatch submitted video footage of his personal experience as a victim of an IRS impersonation scam. As a result of the scam, Hatch lost $8,000 dollars.
Tim Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration
In his testimony, Tim Camus described the Department of Treasury’s Inspector General for Tax Administration’s (TIGTA) efforts to investigate Internal Revenue Service (IRS)-related frauds and scams. He added that sweepstakes and lottery scams, e-mail and phishing scams, and investment scams are among the top ten fraud schemes used by criminals to target senior citizens. Camus highlighted two major IRS-related scams that Treasury has been investigating for the past years: 1) telephone impersonation scams, which have led more than1.8 million Americans to report to TIGTA that they received unsolicited telephone calls from individuals falsely claiming to be IRS or Department of the Treasury employees; and 2) the “lottery scam,” which has reemerged as a significant threat to tax administration.
Lois Greisman, Associate Director, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission
In her testimony, Lois Greisman discussed the Federal Trade Commission’s (FTC) efforts to combat fraud against seniors, adding that the Commission has implemented a multi-faceted approach that encompasses robust law enforcement, strategic policy initiatives, and vigorous consumer
education and outreach. Greisman stressed that the population of older Americans is growing rapidly, and by 2030, more than one-fifth of Americans will be seniors. She stressed that public outreach and education is another essential means to advance the FTC’s consumer protection mission while highlighting Pass It On, an innovative education effort created in 2014 aimed at active, older adults.
Diane Menio,Executive Director, Center for Advocacy for the Rights & Interests of the Elderly
In her testimony, Diane Menio discussed the Center for Advocacy for the Rights and Interests of the Elderly’s (CARIE) work to combat and prevent health care fraud and abuse, scams, and financial exploitation aimed at elders. Menio stressed that, “the need to prevent financial exploitation is imperative.” She explained that one of the solutions is for older adults and their families to talk about and plan for possible incapacity. Menio added that financial capacity is often the first type of
decision-making to deteriorate with the onset of dementia or cognitive impairment, making older Americans vulnerable to abuse. Lastly, she commended the Committee on their reintroduction of the Senior$afe Act.
Questions and Answers
Ranking Member Casey asked Menio how her aging advocacy group coordinates with both state and federal authorities. Menio affirmed that the collaboration is challenging, but in Pennsylvania, the elder abuse taskforce operates in various counties throughout the state. She emphasized the importance of knowing all the community groups involved with older adults, including law enforcement and financial advisors.
Menio added that the passage of the Senior$afe Act is essential in the collaboration of the involved groups. She noted that CARIE’s biggest issue is having financial institutions make reports of financial exploitation. Menio concluded that “most of the cases with positive outcomes are because the financial advisors are the frontline gate keepers who see this activity.”
Sens. Marco Rubio (R-Fla.) and Catherine Cortez-Masto (D-Nev.) questioned methods to improving education for older Americans, their families. and caregivers. Rubio particularly focused on the enclave of senior communities where most of their information must come in a second language. Menio responded that it is important to investigate why individuals become subjected to scams. Further, she added that the issue around financial capacity is vital, in which someone may be able to handle their finances well throughout life, but their ability could decrease over time. Menio recommended educating family members and caregivers, but with caution, as caregivers can also be exploitive. Rubio advised speaking to the Spanish language television programs to broadcast public service announcements in Spanish for the elderly.
Sen. Kirsten Gillibrand (D-N.Y.) requested recommendations for preventing scams that include public participation, such as the CVS cashier or the local bank teller. Camus stated that public education is the best way to combat these schemes. He added that Treasury special agents are working with vendors like Wal-Mart to place placards in stores and train cashiers of potential exploitation. Camus provided examples of the work done with MoneyGram, explaining that every MoneyGram kiosk at CVS has a warning sign of potential scams.
Legislation
Sen. Richard Blumenthal (D-Conn.) referenced his bill, the Elder Abuse Prevention and Prosecution Act (S. 178), and its ability to expand data collection, information sharing, and improve the justice system’s response to victims in elder abuse and exploitation cases when asking the witnesses if mandatory forfeiture would decrease the number of crimes. Camus agreed and stated harsher penalties will serve as a deterrent.
For more information on this hearing, please click here.
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Senate Special Committee on Aging
“Stopping Senior Scams: Developments in Financial Fraud Affecting Seniors”
Wednesday, February 15, 2017
Key Topics & Takeaways
- Senior$afe Act: Ranking Member Bob Casey (D-Pa.) applauded the Committee’s reintroduction of the Senior$afe Act (S.223) to encourage financial institutions to disclose suspected exploitation of seniors and provides protection to appropriately trained staff who are reporting in good faith.
- Multi-Faceted Approach: Ranking Member Casey asked Menio how her aging advocacy group coordinates with both state and federal authorities. Menio affirmed that the collaboration is challenging, but in Pennsylvania, the elder abuse taskforce operates with law enforcement and financial advisors.
- Education Recommendations: Sen. Kirsten Gillibrand (D-N.Y.) requested recommendations for preventing scams that include public participation, such as the CVS cashier or the local bank teller. Deputy Inspector Camus stated that public education is the best way to combat these schemes.
Witnesses
- Philip Hatch, IRS Impersonation Scam Victim
- Tim Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration
- Lois Greisman, Associate Director, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission
- Diane Menio, Executive Director Center for Advocacy for the Rights & Interests of the Elderly
Opening Statements
In her opening statement, Chairman Susan Collins (R-Maine) announced the Committee’s priorities during the 115th Congress as retirement security, biomedical research investments, and financial schemes and scams targeting older Americans. Collins proceeded to state that, “the criminals that continue to pray on our seniors are relentless,” and will stop only when the senior citizen is drained of every penny. She added that the Committee’s long-standing dedication to fighting fraud against seniors is raising awareness and prompting enforcement actions that are making a “real difference.” Collins voiced the importance of educating seniors and their family members about fraud as the stakes are extremely high. Additionally, Collins referenced a Government Accountability Office (GAO) study finding that seniors lose $2.9 billion each year to financial exploitation schemes and scams. She concluded by presenting the Committee’s 2017 anti-fraud resource for seniors, “Fighting Fraud: U.S. Senate Aging Committee Identifies Top 10 Scams Targeting Our Nation’s Seniors.”
Ranking Member Bob Casey (D-Pa.), in his opening statement, reiterated the importance of the Committee’s report detailing the top ten scams targeting the nation’s seniors. He added that the report is based on the experiences of more than 2,200 individuals who contacted the Committee’s Fraud Hotline over the past year. Casey applauded the Committee’s reintroduction of the Senior$afe Act (S.223) to encourage financial institutions to disclose suspected exploitation of seniors and provides protection to appropriately trained staff who are reporting in good faith.
Testimony
Philip Hatch, IRS Impersonation Scam Victim
In his testimony, 81-year old Philip Hatch submitted video footage of his personal experience as a victim of an IRS impersonation scam. As a result of the scam, Hatch lost $8,000 dollars.
Tim Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration
In his testimony, Tim Camus described the Department of Treasury’s Inspector General for Tax Administration’s (TIGTA) efforts to investigate Internal Revenue Service (IRS)-related frauds and scams. He added that sweepstakes and lottery scams, e-mail and phishing scams, and investment scams are among the top ten fraud schemes used by criminals to target senior citizens. Camus highlighted two major IRS-related scams that Treasury has been investigating for the past years: 1) telephone impersonation scams, which have led more than1.8 million Americans to report to TIGTA that they received unsolicited telephone calls from individuals falsely claiming to be IRS or Department of the Treasury employees; and 2) the “lottery scam,” which has reemerged as a significant threat to tax administration.
Lois Greisman, Associate Director, Division of Marketing Practices, Bureau of Consumer Protection, Federal Trade Commission
In her testimony, Lois Greisman discussed the Federal Trade Commission’s (FTC) efforts to combat fraud against seniors, adding that the Commission has implemented a multi-faceted approach that encompasses robust law enforcement, strategic policy initiatives, and vigorous consumer
education and outreach. Greisman stressed that the population of older Americans is growing rapidly, and by 2030, more than one-fifth of Americans will be seniors. She stressed that public outreach and education is another essential means to advance the FTC’s consumer protection mission while highlighting Pass It On, an innovative education effort created in 2014 aimed at active, older adults.
Diane Menio,Executive Director, Center for Advocacy for the Rights & Interests of the Elderly
In her testimony, Diane Menio discussed the Center for Advocacy for the Rights and Interests of the Elderly’s (CARIE) work to combat and prevent health care fraud and abuse, scams, and financial exploitation aimed at elders. Menio stressed that, “the need to prevent financial exploitation is imperative.” She explained that one of the solutions is for older adults and their families to talk about and plan for possible incapacity. Menio added that financial capacity is often the first type of
decision-making to deteriorate with the onset of dementia or cognitive impairment, making older Americans vulnerable to abuse. Lastly, she commended the Committee on their reintroduction of the Senior$afe Act.
Questions and Answers
Ranking Member Casey asked Menio how her aging advocacy group coordinates with both state and federal authorities. Menio affirmed that the collaboration is challenging, but in Pennsylvania, the elder abuse taskforce operates in various counties throughout the state. She emphasized the importance of knowing all the community groups involved with older adults, including law enforcement and financial advisors.
Menio added that the passage of the Senior$afe Act is essential in the collaboration of the involved groups. She noted that CARIE’s biggest issue is having financial institutions make reports of financial exploitation. Menio concluded that “most of the cases with positive outcomes are because the financial advisors are the frontline gate keepers who see this activity.”
Sens. Marco Rubio (R-Fla.) and Catherine Cortez-Masto (D-Nev.) questioned methods to improving education for older Americans, their families. and caregivers. Rubio particularly focused on the enclave of senior communities where most of their information must come in a second language. Menio responded that it is important to investigate why individuals become subjected to scams. Further, she added that the issue around financial capacity is vital, in which someone may be able to handle their finances well throughout life, but their ability could decrease over time. Menio recommended educating family members and caregivers, but with caution, as caregivers can also be exploitive. Rubio advised speaking to the Spanish language television programs to broadcast public service announcements in Spanish for the elderly.
Sen. Kirsten Gillibrand (D-N.Y.) requested recommendations for preventing scams that include public participation, such as the CVS cashier or the local bank teller. Camus stated that public education is the best way to combat these schemes. He added that Treasury special agents are working with vendors like Wal-Mart to place placards in stores and train cashiers of potential exploitation. Camus provided examples of the work done with MoneyGram, explaining that every MoneyGram kiosk at CVS has a warning sign of potential scams.
Legislation
Sen. Richard Blumenthal (D-Conn.) referenced his bill, the Elder Abuse Prevention and Prosecution Act (S. 178), and its ability to expand data collection, information sharing, and improve the justice system’s response to victims in elder abuse and exploitation cases when asking the witnesses if mandatory forfeiture would decrease the number of crimes. Camus agreed and stated harsher penalties will serve as a deterrent.
For more information on this hearing, please click here.