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CPAs on a Mission to Prevent Elder Financial Abuse
Many CPAs in personal financial planning or forensic accounting can share war stories about clients or neighbors who have been taken advantage of, not only by strangers but also by family and friends. CPAs are in a position to spot potential fraud perpetrated on their clients, and the PICPA is developing resources to help identify early warning signs of elder fraud.
By Maureen Renzi, vice president - communications
There are few things that make me angrier than when somebody takes advantage of an elderly person. According to the Pennsylvania Department of Aging, among the most common forms of abuse are caretaker neglect and financial exploitation. CPAs can do something to prevent financial exploitation, and the Pennsylvania Institute of CPAs is partnering with the Pennsylvania Department of Banking and Securities (DOBS) to protect the elderly in Pennsylvania.
Many CPAs in personal financial planning or forensic accounting can share war stories about clients or neighbors who have been taken advantage of, not only by strangers but also by family and friends. Oftentimes, senior citizens may be embarrassed to share with an advisor or government authority that they have been “duped.” CPAs are in a position to spot potential fraud perpetrated on their clients, and the DOBS is working with the PICPA to share knowledge and develop checklists to help identify early warning signs of elder fraud and to protect seniors and their assets.
Nationally, more than $36 billion is stolen from seniors each year. Since Pennsylvania is fourth in the nation with a population age 65 and over, and predictions that the total number of elderly individuals and its percentage of the state’s population will continue to increase, this makes Pennsylvania ripe for elder fraud. It also means that it’s an important opportunity for CPAs to employ the cornerstone of the profession – protecting the public interest – and work to protect the elderly from fraud.
On Dec. 6, 2016, the PICPA held a program in Philadelphia that highlighted common fraudulent activity, warning signs, and prevention techniques. Dave Goss, a CPA and forensic accountant, along with Brian LaForme, deputy secretary of DOBS, discussed the duties and responsibilities of power of attorney as well as client confidentiality issues and the CPA Code of Conduct.
As the partnership develops, CPAs and DBOS will also develop resources for the general public so they can join the efforts of CPAs to protect those individuals who deserve our respect and protection as they grow older and more vulnerable.
More resources on elder fraud prevention:
- The National Committee for the Prevention of Elder Abuse
- Pennsylvania Department of Aging
- Elder Investment Fraud and Financial Exploitation Prevention Program
