Adult Protective Services and Elder Financial Exploitation

Testimony to the New York State:

Assembly Standing Committee on Aging, Assembly Standing Committee on Banks, Assembly Standing Committee on Children and Families

Public Hearing: December 2, 2025

Thank you, Chairs Seawright, Vanel, and Hevesi, for the opportunity to testify today on the role of Adult Protective Services (APS) in the prevention, detection, and intervention of financial exploitation committed against older adults. The Center for Elder Law & Justice (CELJ) has been serving the Western New York region for over 40 years. Our mission is to improve the quality of life for older, disabled, and low-income adults through the provision of free legal services, primarily in Western New York. Our goal is to use the legal system to ensure that our clients may live independently and with dignity.

CELJ is a statewide leader in elder abuse prevention and response. Since 2012 we have provided direct civil legal representation to over 2,500 survivors of elder abuse, fraud, and exploitation across Western New York. Through our partnership with Lifespan of Rochester, we coordinate five Enhanced Multidisciplinary Teams (EMDTs) in Erie, Niagara, Chautauqua, Cattaraugus, and Wyoming Counties and provide civil legal services to two additional teams in Genesee and Orleans counties. Our trauma-informed attorney–social worker teams work collaboratively with law enforcement, Adult Protective Services, financial institutions, and healthcare providers to identify and respond to elder abuse cases.

• Adult Protective Services Mandate is Different from Child Protect Services

When addressing the issue of financial exploitation of older adults, and the role of Adult Protective Services (APS), it is important to understand that the authority and legal power of APS is different and more limited than that of Child Protective Services (CPS). In New York, the requirements for Adult Protective Services (APS) referrals are outlined in New York Social Services Law §473. This statute establishes that APS serves adults 18 years or older who:

• Have a mental or physical impairment,

• Are unable to protect themselves from abuse, neglect, or exploitation,

• And have no one available who is willing and able to assist responsibly.

APS serves adults who, because of physical or cognitive impairments or mental health challenges, are unable to protect themselves from abuse, neglect, or financial exploitation, or who have no one willing or able to assist them. APS operates under a self-determination framework; adults are presumed to have capacity and have the right to make decisions, even when their decisions place them at risk. APS assesses risk, connects the vulnerable adult with essential services, and intervenes when harm is imminent.

CPS operates under the principle that NYS has an interest in ensuring the welfare of minors and that minors cannot protect themselves. CPS can compel cooperation, mandate services, and remove children from unsafe situations. APS does not have parallel powers. Adults are presumed competent unless a court determines otherwise, and APS cannot require an adult to accept help, surrender financial control, or authorize access to their personal affairs absent from a legal finding of incapacity.

Despite these limitations, APS is a critical frontline defense against financial exploitation. Effective protection means upholding the autonomy and civil rights of older adults, while ensuring APS workers and financial institutions have the authority to act swiftly when there is a reasonable belief of financial exploitation involving individuals with diminished or declining capacity. Preserving the autonomy is a legal imperative that is also central to one’s ability to age with independence and dignity. Older adults have the right to make financial and personal decisions, including choices others may view as risky, if they understand the consequences of those risks. Any system tasked with their protection must balance safety with respect for civil rights.

• Strengthen Adult Protective Services Response to Financial Exploitation Through Rapid Coordinated Action Between Banks and Adult Protective Services

Financial exploitation is one of the fastest growing and most damaging forms of abuse. Victims often lose their life savings, independence, and housing stability, and most losses are never recovered. The exploitation occurs from both strangers, as well as trusted family, friends, and caregivers, making these cases complex and resistant to a one-size fits all solution. According to AARP, about 72% of the $28.3 billion stolen annually from older adults is taken by someone the victim knows (family, friends, caregivers). In those situations, the perpetrator of abuse is often the caregiver, and the need for holistic services is especially critical.

APS plays a critical role in investigating financial exploitation; however, cases increasingly involve complex financial instruments, fraught interpersonal relationships, interstate actors, and rapidly executed electronic transactions. APS’ role needs to be reinforced through clearer pathways for referrals and increased alignment with banks and financial institutions. The following is an example we worked on with APS:

A ninety-year-old man was exploited when his son withdrew approximately $250,000 from his bank account without authorization, relying only on an outdated record of being successor Power of Attorney for the victim’s late wife. Despite a request from Adult Protective Services to freeze the account after the third withdrawal, the bank failed to act, allowing nine additional withdrawals at the same branch, often with the same teller, under the pretense of “kitchen updating.” The victim, who did not grant permission for these transactions, chose not to pursue criminal charges in order to preserve family relationships, a reluctance commonly seen among older adults. Although we were able to eventually secure the return of $150,000, $100,000 was reported as invested in cryptocurrency and remains unrecovered, with additional property sale proceeds unaccounted for. The bank later admitted the transactions were processed by a new teller and a float manager, and staff have since been retrained on proper procedures. This case underscores how delays in fraud department intervention and inadequate frontline safeguards leave older adults vulnerable to significant financial exploitation.

As the above highlights, laws must be strengthened to ensure uniformity across the state—covering Adult Protective Services (APS), law enforcement, banking, and other financial institutions. Our experience with this issue has shown us that each bank handles these situations differently, creating confusion and inconsistent outcomes depending upon where the victim is residing. The Executive and Legislature have introduced legislation designed to enhance New York State’s ability to identify, prevent, and respond to financial exploitation. These proposals aim to modernize statutory tools, improve coordination among agencies and financial institutions, and guarantee that vulnerable adults receive timely notification.

The Center for Elder Law & Justice strongly supports the intent behind measures such as S6379 (Cleare) / A7019 (Seawright) and A4806 (Vanel, Dinowitz), as well as the Governor’s budget proposal from FY25-26. These bills represent important steps toward protecting vulnerable adults from financial exploitation.

In many cases, victims’ accounts are completely depleted before investigations conclude. It is therefore critical that banks be required to place a hold when Adult Protective Services (APS) has notified them of suspected abuse. Additionally, when a bank itself suspects exploitation, the proposed bills could be strengthened by requiring the bank to make an APS report. Using the language of “shall” rather than “may” will ensure timely intervention and consistency across the state.

While notice requirements are necessary for transparency, they may inadvertently increase the risk of physical harm to victims by alerting perpetrators. We urge safeguards to be considered in these provisions to prevent unintended consequences.

At the same time, any legislation must strike the right balance—safeguarding vulnerable adults while respecting vital civil liberties. For example, depositors who object to such holds should have an easily identifiable process to appeal decisions.

The Center for Elder Law & Justice looks forward to working closely with the Governor and Legislature to address these complex issues and enact comprehensive, impactful legislation that protects New Yorkers from financial abuse.

• Focus the Role of APS on the Prevention of Older Adult Exploitation and Abuse.

We believe APS is overwhelmed with other responsibilities, which impacts their ability to handle the numbers of investigations and complaints regarding older adult exploitation. As an example, APS in Erie County is Social Security Representative Payee for over eight hundred adults, and court-appointed guardian for 140 people. They must manage this labor-intensive work with their obligation to investigate and prevent financial elder mistreatment. Since elder financial abuse is extremely underreported, any well-intentioned public relations campaign will undoubtedly result in even more complaints to APS. Without a change (and additional funding) we are setting ourselves up for failure.

Elder abuse (both financial and physical) often ends only when a petition for guardianship is brought. While the current guardianship statute lays out a process for petitioning for when an adult needs a guardian to make his or her financial decisions, once a judge finds that a guardian is necessary, there are no resources allocated to pay someone to serve as guardian. Since the statute also states that APS is the guardian of “last resort,” many counties find themselves overburdened with this role and therefore unable to dedicate sufficient assets to the role of investigating adult abuse.

While nonprofits such as the Center for Elder Law & Justice, Lifespan and Project Guardianship do handle such referrals, our resources are limited, and we cover only a small portion of the counties in New York State. In 2022, nonprofit guardianship providers, judges and advocates for older adults, formed the Guardianship Access New York Coalition (GANY). We propose making a significant and permanent statewide investment in nonprofit guardianship services that would help meet the mandate under Article 81 of the Mental Hygiene Law. Such an investment would ensure that all older New Yorkers and people with disabilities who need a guardian can get one, and that would allow judges to fulfill their mandate to appoint guardians for incapacitated persons. Further, by funding nonprofit guardianship providers to meet the growing demand for services at scale, we can reduce the burden on APS and enable them to concentrate on preventing elder maltreatment.

GANY proposes an annual investment of $15 million to fund a Statewide Initiative of Nonprofit Guardians (SING). This funding would sustain anchor partners and subgrantees in delivering person-centered guardianship services to 1,500 New Yorkers across the state each year. SING members could accept appointments from judges in cases where the person in need of a guardian does not have a family member or friend to serve; doing so could prevent profit-seeking entities from exploiting our guardianship system. Most importantly, SING would ensure access to an ethical, dependable, and effective guardian, regardless of their financial circumstances, thus making New York a safer, more equitable place to age.

Click here to watch Karen’s testimony beginning at 3:34:00