Elder financial exploitation is the illegal or improper use of an older person’s funds, property, or assets. Older Americans are increasingly becoming targets for fraud and financial exploitation.  An estimated 20% of Americans over the age of 65 (more than 7.3 million seniors) have been victimized by financial abuse.¹  Elder financial exploitation costs victims billions of dollars each year, with estimates ranging between $3 billion and $36 billion.²

Fraudsters tell lies, make threats and use emotional manipulation to carry out their scams.  Fraudsters target older Americans because they typically have access to pensions, retirement accounts, social security payments as well as checking and savings accounts.  Seniors who are socially isolated, experience cognitive decline, have chronic conditions or have functional limitations are particularly at risk of exploitation.

The best way to protect your loved one is to watch out for red flags and help them take important steps to safeguard their assets and identity:  

• Caregivers should stay alert for checks written to unusual recipients, unexplainable increases in credit card debt, unauthorized charges on statements, uncharacteristic attempts to wire large sums of money, discontinued utilities due to lack of payment and/or dramatic changes in payments for professional services such as medical care and investment services.
• Financial caregivers should keep well-organized financial records, including up-to-date lists of assets and debts and a copy of all financial transactions to better spot discrepancies in their loved one’s finances. Banks are well-positioned to detect, prevent and report elder financial exploitation.

Independent Bank is continuously enhancing our capacity to spot and stop elder financial exploitation through on-going training and enhanced fraud detection technologies:

• Frontline staff members observe and engage customers on a daily basis, enabling them to serve as one of the first lines of defense.
• The types of warning signs our bankers look for include unusual account activity, unpaid bills or eviction notices, suspicious signatures, new “best friends,” and new powers of attorney that an older adult doesn’t understand or altered wills.

Older Americans can help protect themselves from financial exploitation by following these tips:

• Keep personal information private. Never share your social security number, account information, or personal details over the phone or internet, unless you initiated contact with a trusted source.
• Shred receipts, bank statements and unused credit card offers before throwing them away so fraudsters can’t piece together your personal information.
• Never let a new or untrusted “advisor” pressure you into sharing personal or financial details. They could be a fraudster.
• Check your credit report at least once a year to ensure no new credit cards or accounts have been opened by criminals in your name.
• Register your phone number at the Do Not Call Registry to stop solicitation calls. Do not answer phone calls from numbers you don’t recognize, instead wait and check your voicemail message.

If you suspect that you or a family member have been the victim of elder financial abuse, take immediate action:

• Victims should report the suspected abuse to the bank and enlist their help in fixing and preventing fraud.
• Victims should contact the local police and Adult Protective Services in the appropriate town or state to report the problem.
• Call the Victim Connect Hotline at 1-855-484-2846 or the Eldercare Locator helpline at 1-800-677-1116.
• Report scams to the Federal Trade Commission.
• For more information, visit: The Department of Justice.

Sources: ¹Elder Investment Fraud and Financial Exploitation, Investor Protection Trust, a non-profit investor education organization (2010). Retrieved from http://www.investorprotection.org/downloads/EIFFE_Survey_Report.pdf

²Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends (February 2019). Retrieved from https://files.consumerfinance.gov/f/documents/cfpb_suspicious-activity-reports-elder-financialexploitation_report.pdf