Discussion Fraud against Older Adults

Discussion:Fraud against Older Adults

Discussion:Fraud against Older Adults

Fraudulentactivities targeting the seniors have become a 21sttrend. Study shows that about 26 % of the American seniors havebecome victims of fraud at one point in their lifetime (RetirementIndustry Trust Association, 2015). This paper will analyze the caseof Lucca, an older adult who was scammed through a fraudulentinvestment scheme.

of the incident

Luccawas an 80 year old American woman who received a call from animposter who claimed to be a lawyer. The caller invited Lucca to takepart in an enterprise that could help her win some money. Theanonymous caller requested Lucca to make a series of 27 wiretransfers that totaled about $ 330,000 within a period of six monthsvia Wells Fargo bank (Massaro, 2014).

Effectof the fraud

Thefraud resulted in litigation against the bank for failing to discloseand submit information about potential scam to the authorities. Thecourt vindicated the bank stating that the law does not requireinstitutions to submit client’s information to authorities onclaims of potential fraud (National Council on Aging, 2015).

Possiblemeasures of addressing the fraud

Fraudcan be prevented if families appoint one of them to advice theseniors on any matter that involve transfer of resources (Massaro,2014). Secondly, legislators should amend the current laws and makeit mandatory for the financial institution to report any suspicioustransaction to the relevant authorities.

Effectivenessof the current measures

Thecurrent measures are ineffective and they have left the seniors asvulnerable. In the case of Lucca, the current law uses the word“may”, which means that it is optional for the financialinstitutions to report fraudulent transactions affecting seniors tothe relevant authorities (Massaro, 2014).

Conclusion

Olderadults are vulnerable to fraudsters because they are believed to havea lot of resources. The current laws do not protect them properly.

References

Massaro,C. (2014). NewJersey court holds financial institutions are not required to reportsuspected elder fraud.Hackensack, NJ: Elder Law Perspective.

NationalCouncil of Aging (2015). Top10 financial scams targeting seniors.Arlington, VA: NCA.

RetirementIndustry Trust Association (2015). Senior fraud initiative. RITA.Retrieved November 21, 2015, fromhttp://www.ritaus.org/senior-fraud-initiative