Financial exploitation costs America’s seniors billions of dollars per year, and the Consumer Financial Protection Bureau (CFPB) wants banks and credit unions to play a bigger role in detecting and responding to it.
The agency today issued an advisory for financial institutions that is supposed to help them be more proactive in protecting older consumers from the most common form of elder abuse.
“This action gives financial institutions best practices and tools to protect older consumers from financial abuse,” said CFPB Director Richard Cordray. “When seniors fall prey to a scam by a stranger or to theft by a family member, they may be too embarrassed or too frail to report it. Banks and credit unions are uniquely positioned to look out for older Americans and take action to protect them.”
Seniors are common targets of financial abuse, often by family members. They tend to have significant assets and often have a regular source of income such as Social Security. They may also be vulnerable becauase of cognitive decline, physical disability, and isolation.continue reading »