Elder abuse comes in many forms. Some people who live with or care for older adults may engage in physical or verbal abuse of those vulnerable people. Others may target older adults for financial abuse. They take advantage of the loneliness that may come with advanced age or the decline in cognitive function that older adults may experience to trick or manipulate them into deleterious financial choices.
Financial elder abuse is a well-known phenomenon. California state lawmakers have already enacted statutes intended to protect against certain abuses. Lawmakers might soon pass new legislation intended to protect older adults from financial fraud by imposing new requirements on financial institutions.
Banks play a role in many elder abuse cases
Most older adults protect their resources by depositing them with banks and similar financial institutions. When they become victims of fraudulent schemes, they may go directly to their banks to transfer funds or make substantial withdrawals.
That is exactly what happened in a case involving financial fraud that affected an older woman. Over the course of multiple trips to the bank, the targeted older adult eventually transferred over $720,000 to parties involved in the fraudulent scheme. Those funds represented the entirety of her retirement savings, leaving her without resources for the remainder of her golden years.
She took action by asking state lawmakers to intervene and hold financial institutions accountable for ignoring obvious warning signs of fraud. A new bill working its way through the California legislature could help financial institutions protect older adults targeted by those with fraudulent intentions.
Should the bill pass, banks and other financial institutions can delay large transfers in cases where there are warning signs of fraud. If the transfer is more than $5,000, banks could delay the transfer by up to three days in cases where workers reasonably suspect that fraud led to the transfer request. The law could also expand mandatory bank employee training to include education about red flags for elder abuse and financial fraud.
Financial professionals might be able to probe the decision to transfer or withdraw large amounts and could help older adults recognize the warning signs of fraud before they lose their most valuable assets. In the meantime, older adults and their family members need to be proactive about watching for signs of potential financial abuse.
Confidence schemes, investment fraud and even manipulation by loved ones can deprive older adults of the resources that could let them live comfortably in their golden years. Fighting back against financial fraud often falls to those who love and support older adults.
