Publisher's Commentary: Industry Insights—Protecting Seniors From Financial Fraud
Technological advancements have made banking online easier than ever before, but with rapid change comes an increased risk of fraud and financial abuse directed toward senior patrons. According to a report by the American Bankers Association (ABA), one in five seniors is estimated to have been a victim of financial abuse, and the financial toll of this exploitation is devastating — each victim loses $120,000 on average.1
The U.S. Consumer Financial Bureau recommends banks employ data analysis to monitor transactions and detect changes in an account holder’s regular financial behavior, train employees to recognize signs of exploitations and abuse, report any suspected abuse to authorities, and offer “age-friendly services” for seniors.2
The American Bankers Association (ABA) recommends banks report elder financial abuse to all federal, state and local authorities, as well as file a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN).3 Financial institutions have reported over 180,000 suspicious incidents targeting seniors since 2013, all involving a total of more than $6 billion; data shows that adults aged 70 to 79 have the greatest average monetary loss.? Financial institutions must remain vigilant against financial fraud, and the sooner they report suspicious activity, the sooner law enforcement officials can enhance investigations and apprehend those involved.
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