Compensation for Victims of Scams and Financial Exploitation

Disclaimer

Throughout the MPA process, more than 100 proposals were developed thanks in particular to thousands of hours of work by external stakeholders and members of the public. These proposals and the MPA Council commentary are being submitted to the Governor and shared with policymakers and the public to inform policymaking. These proposals represent a starting point for discussion. Further discussion is necessary between relevant state agencies and stakeholders to both refine these proposals and assess which may be appropriate to adopt and implement.

Summary

Streamline compensation and support for victims of financial fraud and scams. This proposal includes recommendations to fund a pilot program using evidence-based approaches to reduce the risk of financial abuse, amend statute to allow compensation up to $2500 for financial abuse victims, and simplify the definition of “disabled victim.”

Justification

Older adults may fall victim to financial exploitation resulting in financial loss. Evidence based approaches to prevent financial abuse and proper compensation efforts may mitigate the impacts of financial exploitation on older adults and people with disabilities. 

Full Proposal

Scams and financial fraud pervasively impact older adults and people with disabilities in New York State. Victims of financial crimes are unable to be appropriately compensated for their losses due to statutory limits on agencies. The inability to recoup losses presents a significant burden on victims, their families, and advocates. Streamline compensation and support for victims of financial crimes:

• Fund a pilot program to develop and implement an evidence-based approach to reduce the risk of financial abuse and scams for older adults and people with disabilities.
  • Train adult children and caregivers how to talk to their older or vulnerable loved ones about scams and financial abuse.
  • Provide implementation progress updates and evaluations of program impacts.
• Amend existing statute to allow victims of scams and fraud to receive up to $2,500 in reimbursement per claim.
  • This carve-out would only apply to victims of financial crimes with receipts for transactions.
• Simplify the definition of, “disabled victim,” to include any physical, mental, or medical impairments, as evidenced by medical records, which prevent the exercise of a normal bodily function existing at the time of the crime.

MPA Council Commentary

This proposal is categorized as near-term. Components 2 and 3 require legislation and were proposed as part of Governor Hochul’s FY26 Executive Budget. Component 1 would require funding subject to the annual budget process and available resources.