Financial elder abuse

While it’s slightly off-topic for this particular column, I’m compelled to share a story that recently took place at a local bank. At first, this customer’s visit seemed routine, as he just wanted to deposit a check. However, the retail banker noticed something off about what was written in the memo line of the check. A deeper look into the customer’s account history revealed some inconsistencies and multiple checks from the same source labeled as payments for caregiving.

Feeling uneasy, the banker contacted the financial institution from which the check was written, who verified the funds, but who also shared the caller’s concerns with their fraud team. This alert led to a more thorough investigation, uncovering a pattern of financial elder abuse by this customer, who was exploiting elderly clients under his care. Through vigilant efforts and collaboration between multiple parties, the bank played a pivotal role in helping to prevent further abuse.

Recognizing and combatting financial elder abuse is critical, not only for financial institutions, but for all companies and corporations.

It’s a growing concern in our society, as more and more seniors fall victim to fraudulent schemes and unethical practices that drain their financial resources. The business community has a unique opportunity to help combat this issue by being vigilant and proactive in protecting elderly customers.

I hope the following arms you with valuable information that will help you recognize the signs of financial elder abuse and also provide some actionable steps that can be taken to aid in stopping it.

What is financial elder abuse?

You might ask, “What is financial elder abuse?” It involves the illegal or improper use of an elder’s funds, property, or assets and can occur through various means.

• Seniors may be targeted by scammers who trick them into giving away money or personal information.
• Caregivers, family members, or others with access to an elder’s finances may make unauthorized withdrawals or purchases.
• Elders may be pressured or manipulated into signing documents or making financial decisions against their will.

Recognizing the signs

Recognizing the signs is crucial, though not always easy. Here are some indicators to watch for:

• Unusual banking activity – Large withdrawals, frequent transfers, or sudden changes in account balances.
• Changes in financial management – An elder who suddenly changes their power of attorney or begins to show confusion about their financial situation.
• Physical and emotional signs – Signs of neglect, anxiety, or fear when discussing finances or certain individuals.
• Unpaid bills – Despite having adequate resources, bills and other financial obligations are not being met.

Here is how you can help and play a significant role in preventing financial elder abuse. 

• Educate Your Staff to recognize the signs and understand the appropriate steps to take if they suspect it. Regular training sessions can keep this issue top of mind and ensure that your staff feels confident in handling potential cases.
• Implement Safeguards and establish protocols that protect elderly customers, such as requiring additional verification for large transactions or changes in account management. These safeguards can help prevent unauthorized access and alert businesses to potential issues.
• Foster a Safe Environment and create a welcoming and supportive atmosphere where elderly customers feel comfortable discussing their financial concerns. Encourage them to ask questions and provide clear, understandable information about their accounts and transactions.
• Collaborate with Authorities and organizations such as local law enforcement, social services, and elder advocacy groups to stay informed about the latest scams and preventive measures. Establish a direct line of communication to report suspicious activities promptly.
• Raise Awareness by using your platform to educate the community about financial elder abuse. Host informational sessions, distribute educational materials, and share resources that can help elders protect themselves and their finances.
• Offer Financial Reviews by providing regular financial check-ups for elderly customers to help them stay on top of their finances. This can include reviewing account activity, ensuring that their financial documents are in order, and discussing any concerns they might have.

Financial elder abuse is a serious issue that requires the attention and effort of everyone in the community, including local business owners and corporations. You can make a significant impact in preventing this form of abuse by staying vigilant and implementing protective measures. Together, we can help safeguard the financial well-being of our senior population and ensure that they enjoy their golden years with the security and dignity they deserve.

Disclaimer: 

The information provided in this article does not, and is not intended to, constitute legal or investment advice; instead, all information and content in this article is for general informational purposes only. Readers of this article should contact their attorney or investment advisor to obtain advice with respect to any particular legal or investment matter.