California’s Little Hoover Commission Report Tells Only Part of the Story

​By Carol Sewell and Maureen Sullivan
 
In May California’s Little Hoover Commission (LHC) released the results of its extensive research to  understand and envision solutions to the epidemic of financial frauds and scams. The California Elder Justice Coalition (CEJC) was honored to contribute to this effort in an advisory role and applauds the work that was done. Many of the solutions proposed by the LHC’s recent report, A California Strategy to Stop Financial Scams, have been discussed conceptually by advocates in recent years and could result in meaningful change if implemented.
 
There is no doubt that scams and frauds can affect anyone with access to technology, as identified in the LHC report. And no one denies that financial losses, regardless of the victim’s age or finances, can be painful and can cause serious harm.
 
Still, the LHC report fails to acknowledge the enormity of older adult losses and the well-documented (and often life-threatening) trauma that financial losses cause these victims. According to an FBI Internet Crime Complaint Center report released on May 15 of this year, the average loss to an older victim in 2025 was $38,000, an amount derived from the over 201,000 reports totaling over $7.7 billion filed by victims over 60 from across the nation. The FBI reports that the number of complaints by older victims rose by 37% over the preceding year and losses increased by 59%.
 
Today California’s over-60 population totals more than nine million and is expected to increase by 25% by 2030. Of that nine million, one in 20 have experienced and reported financial abuse to Adult Protective Services. However, experts believe that only one out of 44 incidences of elder financial abuse are ever reported. Financial abuse is now the most common form of elder abuse and banks across the U.S. report an average loss of $120,000 per older adult victim.
 
Losses of this magnitude have impact. While a younger adult may lose a life savings, that individual has the time to rebuild their savings and remain in the workforce. For an older adult or person with a disability living on a fixed income, even a small dollar loss can be staggering, leading to eviction, homelessness, or even suicide. With no opportunity to recover even a fraction of the loss, older adults are prevented from rebuilding their financial stability or way of life. Many lose their entire savings and their homes. Older adults cannot simply restart a career or begin working again; they have no way to avoid life in poverty. Family members can provide some support but often criticize and blame the older adult for the loss, further demoralizing the victim, contributing to self-blame and isolation.
 
Given the fact that most technology scams cannot be traced and lost funds never recovered, the need for a support system for these victims is clear. Rarely does a victim advocate have the bandwidth to work with a victim to ease them out of their grief and shame to accept what little help is available. In truth, there is no statewide support system to provide needed emotional supports, to facilitate filing charges and navigate the court system, or to provide basic financial supports to help a victim get back on their feet.
 
With the growth in the older population, rates of financial elder abuse will also increase unless prevention and protections are put in place to specifically address their concerns. Advocacy is needed to help victims avoid evictions, apply for benefits, and identify and access important community supports. Older victims need income subsidies, help navigating late payments and appointments, and debt protection through no cost or fee based bankruptcy protections. A network of trusted and vetted peer supports and emotional support groups is needed to help victims understand the crime was not their fault and to know they are not alone. While the LHC report does not address the equally devastating elder fraud and financial exploitation committed by family members, caregivers, and acquaintances, the support system described above could also serve these victims.
 
Approaching older adult victims’ needs with greater focus is not unprecedented. Older and dependent adults are already singled out in statute as special status populations. Crimes against these groups incur higher penalties under California’s Penal Code Sec. 368 and the Elder and Dependent Adult Civil Protection Act (Welfare and Institutions Code Secs. 15600 through 15675). It’s understood that insufficient incomes, rising costs, mobility limitations, isolation, cognitive decline, and a natural tendency to trust people, all contribute to a vulnerable adult’s susceptibility to undue influence, scams and frauds. This highly vulnerable group merits special focus in the state’s efforts to prevent, respond, and help victims recover from scams and frauds.    
 
Carol Sewell is the Policy Director for California Elder Justice Coalition
Maureen Sullivan is a member of the CEJC Steering Committee and the Elder Advocate at WEAVE

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