Keeping Seniors $afe from Financial Fraud

June 15 is World Elder Abuse Awareness Day, and much more work needs to be done to raise awareness regarding how to better protect vulnerable seniors from predators seeking to steal the financial security they built over a lifetime.

Recent studies show 17% of seniors are victims of financial exploitation, yet many never report the abuse. The financial community is working to combat this unfortunate pattern. We are providing resources to educate the public regarding elder financial abuse and outlining steps individuals can take if they suspect financial exploitation of a senior is taking place.

Financial fraud can take many forms including scams and schemes relating to identity theft, credit card theft, stolen checks, health insurance, funeral services, tech support, bogus lottery tickets, investments, and taxes. For many older Americans, however, a sobering reality is that often the predator is a member of their family.

Statistically, an individual more likely to engage in the deceit of an older family member is a male who has a history of substance abuse, which may also be connected to a mental health or physical health issue. The perpetrator may also be experiencing significant financial stress, such as unemployment. Because the victims of these crimes are less likely to report a family member, it is important for members of the broader community to be aware of circumstances that may make a senior particularly susceptible to fraud. Cognitive decline, frailty, and isolation that makes it easier for a predator to gain access by posing as a trustworthy companion are circumstances that can contribute to making someone more vulnerable.

To help detect and prevent elder financial exploitation, many financial institutions have created contact information forms for clients to sign before their circumstances may make them more susceptible to fraud. Having access to trusted contacts can help a bank or investment firm understand who is best to contact on behalf of the client.

Many institutions have also established training programs to help their staff recognize financial misdeeds and report suspicious activity to authorities. Notably, in 2013 seven federal financial regulators clarified that financial institutions are generally able to report suspected financial exploitation without violating federal privacy laws.

We are also pleased Congress is strengthening laws to help deal with these issues. Senators Susan Collins (R-ME) and Claire McCaskill (D-MO), along with Rep. Kyrsten Sinema (D-AZ) and Rep. Bruce Poliquin (R-ME) are working together to advance the Senior$afe Act. Their legislation, if enacted, will build on the steps voluntarily taken by many in the industry and by regulators, including providing a safe way for trained personnel to report suspected financial exploitation to the proper authorities. Our organization, along with consumer groups and other members of the financial services industry, is pleased to endorse the Senior$afe Act.

The House Financial Services Committee is considering H.R.4538, the Senior$afe Act and we urge the Senate to take similar action. World Elder Abuse Awareness Day was established to increase awareness regarding these issues around the world and to provide communities with information and tools necessary to ensure elders are protected from criminals and predators looking to rob them of their dignity and security. We are proud to do our part and encourage others to do the same.