The Federal Trade Commission ("FTC") outlined its enforcement, education and research efforts to protect older consumers from fraud, identity theft, and other financial abuse.
In a new report submitted to Congress, the FTC identified various types of financial elder abuse including business imposter scams, sweepstakes, lottery scams, family or friend imposter scams, and prizes.
The FTC described key enforcement actions it has taken to protect older Americans. In addition, the agency detailed its outreach and education efforts and highlighted the Every Community Initiative and the Pass It On Campaign. These programs provide information on the impact of fraud on certain groups of consumers as well as fraud prevention resources to older Americans.
Commentary / Conor Almquist
Though the FTC highlights numerous enforcement successes in combating financial exploitation of elders, it is unclear what deterrent effect, if any, these actions will have on bad actors, as the majority of the sanctions involve industry bans and monetary fines rather than prison time. (Of the many enforcement actions discussed, only one involved a prison sentence.) Similarly, it is unclear that any of these enforcements result in meaningful restitution to the defrauded individuals. In many instances, the fraudsters are "judgment proof" and the ultimate payments made pursuant to their settlements are a fraction of the judgment.
Successful enforcements against those exploiting vulnerable individuals are important. So too are the education and awareness initiatives of the FTC and other regulators. It may be the latter that proves to be most impactful in protecting elders in the long run. Educating the populace as a whole on these issues, while empowering family members and fiduciaries to act quickly in preventing and informing authorities of potential exploitation, is vital.
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