Financial Elder Abuse
As financial abuse of elder and vulnerable clients has grown in the U.S., regulatory agencies at the national and state levels have intensified their resolve to protect those individuals, and have engaged financial institutions in that effort.
Increasingly, broker-dealers and RIAs that do not apply the operational disciplines necessary to identify and address financial abuse are considered part of the problem. Conversely, financial institutions that make the protection of seniors a priority will earn the trust and loyalty of clients, regardless of their age.
Capital Forensics offers a suite of consulting services — covering policies & procedures, training and best practices, all tailored to federal and state-specific reporting requirements — for firms that intend to honor their obligation to protect senior and vulnerable clients and their families against financial abuse.
1 in 5
1 in 5 people aged 65 or older reported being a victim of financial fraud or abuse.
1 in 20
1 in 20 seniors reported being financially abused by a family member in the past year.
1 in 44
Only 1 in 44 seniors who are financially exploited ever report the abuse.
9 in 10
9 in 10 people who commit elder abuse are family members, or other trusted individuals.
$36.5 Billion
Elder financial abuse costs seniors in the U.S. $36.5 Billion each year.
9%
9% of financial abuse victims are forced to turn to Medicaid, as a result of money being stolen from them.
Sources: U.S. News and World Report, The National Council on Aging, True Link Financial, U.S. Department of Health and Human Services, The Utah Cost of Financial Exploitation, American Journal of Public Health
Policies and Procedures
CFI can develop policies and procedures customized to your firm’s products and lines of business, and can also apply forensic accounting and fraud investigation techniques to support your efforts to identify and report abuse, which can include:
- Abuse of Trust
- Asset Conversion
- Breach of Fiduciary Duty
- Court-Appointed Expert Analysis
- Embezzlement
- Falsified Documents
- Misappropriation of Assets
- Missing Funds
- Unauthorized Gifting
- Unethical Trustee Activities
Best Practices
Consistent with guidance from securities regulators (SEC, FINRA and NASAA) as well as the U.S. Consumer Financial Protection Bureau, CFI can assist your firm with the development of best practices related to:
- Recognizing signs of elder financial abuse from any source
- Conducting investigations to establish “reasonable belief” necessary for temporary holds
- Prompt reporting of suspected abuse to authorities
- Providing requested records and other documentation
- Maintaining awareness, including alerts for suspicious account activity
- Use of data analysis to review and evaluate transactions for abuse
Customized Training
Based on the Senior Safe Act (SSA) and NASAA state-specific guidelines, CFI can develop customized (in person or virtual) training programs for your firm, designed to help your professionals to:
- Identify financial and other forms of exploitation of senior and vulnerable adult clients;
- Recognize signs of possible cognitive impairment in a client;
- Properly establish, manage and review an account for a senior or vulnerable adult client;
- Designate, when appropriate, an authorized third party as a trusted contact; and
- Document and report suspected financial exploitation of senior and vulnerable adult clients.
