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As a payments professional, elder financial abuse is something of which you need to remain informed. Here are some common examples of elder abuse:

• Telemarketing scams,
• Power of attorney fraud,
• Identity theft,
• Interception of checks or cash,
• Befriending an elder to obtain elaborate gifts,
• Convincing an elder to hand over money or personal property,
• Coercing the person to change their estate planning documents,
• Forging the person’s signature,
• Home improvement scams and
• Failing to pay for the cost of a nursing home.

Losing money or possessions to scams, fraud and exploitation can be especially devastating to older adults, who may not be able to earn back what they’ve lost.

Sometimes financial abuse is not always easy to spot because it may be only minor things here and there, such as a few dollars or small personal items. Often, the abuse will progress once the trust level builds, and the abuser eventually convinces the elder to engage in more extreme behaviors, such as making changes to their will or trust.

What potential warning signs/red flags might your institution notice to identify a financial abuse situation?

🚩 Sudden and unexpected withdrawals from the account.

🚩 Newly opened accounts.

🚩 Notice unnecessary subscriptions or services on statement history.

🚩 Sudden change in the person’s financial health.

🚩 Unexplained ATM withdrawals.

🚩 Sudden transfer of assets.

🚩 A new person in the elder’s life who offers to manage assets and finances.

🚩 Missing items in the home.

🚩 Financial statements sent to another party.

🚩 A family member or caretaker isolating the elder, keeping them from contacting others.

The Consumer Financial Protection Bureau (CFPB) noted in 2016 that, while it recommends that everyone in every state report suspected financial exploitation to all appropriate first responders, only about half the states mandated that financial institutions or a subset of financial professionals report suspected Elder Financial Exploitation (EFE) to Adult Protective Services (APS), law enforcement or both. The CFPB recommended that financial institutions determine whether and when state law mandates reporting by the institution.

Under state mandatory reporting laws, proof of EFE is normally not required and a reasonable suspicion of EFE triggers a duty to report. As of April 2019, 26 states and the District of Columbia mandate reporting of suspected EFE by financial institutions or specified financial professionals. This update includes a statutory chart to identify state reporting requirements. To see if your state has a mandate to report, review Appendix A in the “Reporting of Suspected Elder Financial Exploitation by Financial Institutions” publication for a chart of state statutes involving mandatory reporting related to EFE and the role of financial institutions in reporting it.

Financial institution staff are critical in the fight against financial exploitation, as you may be one of the first to notice suspicious activity. If you’re looking for additional resources, the Consumer Financial Protection Bureau has plenty of resources that can assist bankers, credit union staff and others that serve and protect aging clients.