Spotting elder financial exploitation red flags
While crimes against seniors continue to rise, credit unions are well-positioned to take preventive action.
Elder financial exploitation and elder fraud are rising at an alarming rate and continue to be serious crimes in the United States. With no signs of dissipating, it is just a matter of time before an incident happens in your customer base, if it has not happened already.
While each state defines elder financial exploitation a bit differently, in general, it is when someone illegally or improperly uses or steals a vulnerable senior’s or disabled person’s money or property. These crimes can result in significant loss of financial resources for the victims and often greatly impact their quality of life.
An increase in financial crime and fraud against the elderly is expected to continue to climb as the baby boom population (those born before 1964) age. According to the National Council on Aging, this heartless crime is most likely under-reported due to the victims’ fear, shame and embarrassment. NCOA estimates the cost of elder financial abuse to older Americans up to $36.5 billion annually.
A recent American Bankers Association Foundation research study found that older Americans hold 70% of the deposited wealth in the United States. What’s now being referred to as the “Age Wave,” 10,000 baby boomers are turning 65 every day until 2030, creating an even larger pool of potential victims for fraudsters and scammers. These crimes can be a financial nightmare for seniors, leaving some destitute and despondent.
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