What Works

Senior citizens have long been a target of con artists. The National Center for Elder Abuse in Washington, DC, reports that financial exploitation accounts for nearly 12 percent of all reported elder abuse cases.  And often cases go unreported because victims are embarrassed or ashamed.  Elder financial abuse spans a broad spectrum including telemarketing scams, forging an older person’s signature, taking money or property, confidence crimes ("cons"), and more.

Older people risk being victimized because they may be isolated, lonely, have physical or mental disabilities, lack a familiarity with financial matters, or have family members who are unemployed or have other problems. The elderly become targets for a variety of reasons. They include the following:
 

• Persons over the age of 50 control over 70 percent of the nation's wealth.
• Many seniors do not realize the value of their assets (particularly homes that have appreciated markedly).
• The elderly are likely to have disabilities that make them dependent on others for help. These "helpers" may have access to homes and assets, and may exercise significant influence over the older person.
• They may have predictable patterns (e.g., because older people are likely to receive monthly checks, abusers can predict when an older people will have money on hand or need to go to the bank).
• Severely impaired individuals are also less likely to take action against their abusers as a result of illness or embarrassment.
• Abusers may assume that frail victims will not survive long enough to follow through on legal interventions, or that they will not make convincing witnesses
• Some older people are unsophisticated about financial matters.
• Advances in technology have made managing finances more complicated. 
   

Sometimes family members and caregivers are culprits. Perpetrators may have substance abuse, gambling, or financial problems; have a negative relationship with the older person and feel a sense of “entitlement;” stand to inherit and feel justified in taking what they believe is "almost" or “rightfully” theirs; fear that their older family member will get sick and use up their savings, depriving the abuser of an inheritance; or have negative feelings toward siblings or other family members whom they want to prevent from acquiring or inheriting the older person's assets.

 
Indicators that abuse has occurred may include unpaid bills, eviction notices, or notices to discontinue utilities; withdrawals from bank accounts or transfers between accounts that the older person cannot explain; unusual activity in the older person's bank accounts including large, unexplained withdrawals, frequent transfers between accounts, or ATM withdrawals; or suspicious signatures on checks or other documents.

 
In many fraud cases, banks are in a unique position to spot a problem.  

 
The Massachusetts’ Executive Office of Elder Affairs, in collaboration with the Executive Office of Consumer Affairs, the Attorney General’s Elderly Protection Project, and the Massachusetts Bank Association developed the Massachusetts Bank Reporting Project to help prevent elder financial exploitation.

 
The project has two goals. The first is to increase the number of fraud reports from the bank. While police, fire, and other community professionals are considered first responders for most situation of elder abuse, financial exploitation is not always easy to spot and may not be easily identified by these individuals.  Bank employees are the first responders in financial situations, and helping them understand the problem of financial exploitation and that they can report exploitation is key.

 
The second goal of the program is to increase cooperation between banks and protective services.  Even with a report, there are certain things a bank can do and say and other things they cannot. Helping protective services understand that and helping banks understand the perspective of protective services is key to ensuring the safety of elders in the community.

 
The project provides training to bank personnel in how to identify and report financial exploitation. Bank employees are taught to look out for large withdrawals from a previously inactive account or withdrawals or transfers from recently opened joint accounts.  Suspicious signatures on checks or documents also serve as red flags to bank employees. Frequent withdrawals from ATMs also signal something may not be right. And bank employees are also cautioned to lookout for older customers accompanied by another who may seem to coerce them into making withdrawals or not allow them to speak for themselves. If an elderly customer seems nervous or gives implausible explanations for large withdrawals, they may be victims of fraud, theft, or extortion.

 
The Massachusetts Bank Reporting Project is active in 140 banks in the state and the program has been successfully replicated in New York, Kentucky, Maryland, Oregon, Utah, Virginia, Texas, Michigan, California, and Washington. Thousands of bank personnel have been trained. Sample materials, including model protocols, procedures for investigating and responding to abuse, and training manuals are available by calling 617-727-7750. Ask for Jonathan Fielding, protective services regional manager.