SPRINGFIELD, Ill. (WCIA) – Scammers have been around for more than a decade and are now preying on the elderly. Being scammed out of your life savings by someone you don’t know, or even a trusted family member, can be difficult to bounce back from.
A bill filed by Sen. Steve Stadelman (D–Rockford) is aimed at protecting seniors from being financially exploited to help prevent this dangerous trend.
The bill would give investment advisors the power to delay transactions if they suspect any red flag activities could result in seniors or people with disabilities being taken advantage of.
In Illinois, financial exploitation is illegally using a disabled and/or vulnerable elderly person’s property and money for one’s personal gain through deception or intimidation. Stadelman raised concerns at a news conference Wednesday. He said the bill will allow advisors to safeguard clients’ assets and prevent damage that could be difficult to bounce back from.
“It’s very common for older individuals to fall victim to financial abuse,” Stadelman said. “It’s difficult as someone has built up a lifetime of savings and they depend on that money to be there. It’s got to be soul crushing and it has to just go to the core of their security and their willingness to live and enjoy life.”
Stadelman said one in every five seniors has been a victim of these types of scams, draining nearly $34,000 out of vulnerable elders.
To strengthen the step against giant bad actors, the bill expands the number of people who can report red flags. This includes deal-brokers and compliance staff. Bankers will also be trained to identify red flags.
Acting Director of the Illinois Department on Aging Mary Killough echoed the senator’s concern. She said these crimes toward seniors are sometimes committed by the people they trust the most. Putting measures in place would not only save their assets but also their health.
“If [younger people] were a victim of some type of exploitation, you may have an opportunity to recover,” Killough said. “When older adults are faced with this, a lot of times it results in decline in health and may cause depression. Many of them actually die earlier. Their life expectancy is shortened as a result of financial exploitation. So there’s a clear nexus not only with regards to their ability to survive financially, but their just ability to live.”
The FBI Internet Crime Complaint Center reported that Americans over the age of 60 lost about $3.2 billion in fraud in 2023 — an 11% jump from the previous year. Those numbers are expected to increase.
Under the bill, investment advisors would have 48 hours to notify the Illinois Department of Aging and the Secretary of State’s Securities Department after they pause any suspected transaction.
Killough advised Illinoisans to be vigilant and called on the community to support the efforts to combat financial exploitation.
“Anybody can help, you don’t have to be a mandated reporter to report,” Killough said. “If we see something wrong, talk to somebody and try to prevent it.”
The bill passed the Senate Judiciary Committee Wednesday 5-3.
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April 10, 2025 at 03:32PM
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