The American Bankers Association (ABA) Foundation recently commemorated World Elder Abuse Awareness Day by announcing the release of a free guide to help banking professionals quell the efforts of those seeking to exploit seniors financially.
Seniors lose an estimated $2.9 billion per year to financial abuse, according to ABA’s 2017 Older Americans Benchmarking Report. With more baby boomers retiring, scams targeting the elderly are becoming more prevalent.
The ABA Foundation and OrgWide Services consulted with government agencies, law enforcement agencies, banks of varying sizes and banking trade associations in developing the new guide.
“Bankers should continue to be vigilant and educate their customers about potential fraud,” the report states. “In 2017, the Financial Industry Regulatory Authority (FINRA) issued new rules to guide financial advisors’ conversations with older customers about cognitive decline. These conversations happen between the financial advisor/banker and the customer, their family, trusted contacts and designees throughout the relationship, from account opening to intergenerational transfer of assets.”
The guide provides an overview of the state of financial exploitation; addresses top scams currently in play; examines what banks can do, including how to report suspected fraud; and outlines the distinct roles of law enforcement agencies and adult protective services and how to partner with them. It also includes sample resources, such as introduction letters to law enforcement, Adult Protective Services (APS), senior-focused nonprofits and senior living facilities.
“With the stakes as high as predicted, it is more important than ever for bankers to leverage the engendered trust of their older customers,” the report states. “Bankers are in a prime position to help protect their customers from financial exploitation, since they can spot fraud at the onset and can also help prevent it.”
The guide is part of a broader set of ABA Foundation resources to help bankers protect their senior customers. Bankers can register for FinEdLink (available at aba.com/seniors), which is a free platform that connects participating banks with senior-focused community groups and agencies that would like a banker-led presentation on senior financial safety.