$27B Reported in Elder Financial Exploitation
From Washington Gorge Action Programs:
By Tammy Kaufman
Bingen/Goldendale, Washington (May 22, 2024) - The Financial Crimes Enforcement Network (FinCEN) recently released an analysis based on Bank Secrecy Act reports that indicate in a one-year period, from 2022 to 2023, financial institutions reported roughly $27 billion in suspicious activity related to elder financial exploitation. The April 18, 2024 article from the American Bankers Association (ABA) Banking Journal noted that 80% of all suspicious activity reported by banks involved elder scams.
Elder Abuse Awareness Day is recognized annually worldwide on June 15, bringing attention to issues affecting this vulnerable population. Financial exploitation is one of many concerns surrounding elder abuse. Other common types include physical abuse, neglect, and abandonment.
Over the past few years, financial exploitation has drawn a lot of attention as scammers target the senior population with telephone and computer scams that include using fear strategies, investment promises, IRS cons, and many other tactics. The day of awareness is an important reminder of the crucial role families and communities play in helping safeguard elders against physical, emotional, and financial abuse.
Elder financial exploitation is illegal and considered to be the unauthorized or improper use of an older person’s funds, property, or assets. This common crime deprives many seniors of their lifelong hard-earned assets. Perpetrators are not only strangers but also can be family members, friends, neighbors, or caregivers.
The National Institute on Aging’s webpage has a current list of common scams that are targeting the elderly population, including:
Government impersonator scams, such as someone posing as a Medicare representative asking for account information
Fake prizes, sweepstakes, and lottery scams, in which you are asked to pay money or provide account information to claim winnings
Computer tech support scams, in which a scammer tells you that your computer has a problem and wants you to pay for support services to fix it
The grandparent scam, in which a caller pretends to be a grandchild or other relative in distress.
It is important to watch for red flags in order to prevent a loved one from being burdened by financial exploitation. The American Bankers Association webpage shares the following as tips to help prevent financial exploitation:
Shred receipts, bank statements, and unused credit card offers before throwing them away.
Lock up your checkbook, account statements, and other sensitive information when others will be in your home.
Regularly review your credit report. Never give personal information, including Social Security Number, account number, or other financial information, to anyone over the phone unless you initiated the call and trust the other party.
Never pay a fee or taxes to collect sweepstakes or lottery “winnings.”
Never rush into a financial decision. Ask for details in writing and get a second opinion.
Consult with a financial advisor or attorney before signing any document you don’t understand.
Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your finances.
Pay with credit cards instead of cash to keep a paper trail.
You have the right not to be threatened or intimidated. If you think someone close to you is trying to take control of your finances, call your local Adult Protective Services and tell someone at your bank.
Trust your instincts. Exploiters are often very skilled. They can be charming and forceful in their efforts to convince you to give up control of your finances. Don’t be fooled—if something doesn’t feel right, it may not be right. If it sounds too good to be true, it probably is.
If you or someone you know is suffering from any form of Elder abuse, don’t hesitate to make a report to the Washington State Adult Protective Services intake line at 1-877-734-6277 or call the National Elder Fraud Hotline at 833–372–8311.
To contact a local advocate, please reach out to Programs for Peaceful Living at 509-493-2662 or go to http://wagap.org to learn more about assistance available throughout Klickitat County to support seniors and vulnerable populations.
More details on the FinCEN analysis can be found at https://www.fincen.gov/news/news- releases/fincen-issues-analysis-elder-financial-exploitation.
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Programs for Peaceful Living is part of the Washington Gorge Action Programs (WAGAP) family. Washington Gorge Action Programs (WAGAP) is a 501(c)(3) non-profit Community Action Agency that helps individuals, families, and communities. WAGAP addresses basic human needs, including food, shelter, energy assistance, and more, in Skamania and Klickitat Counties. For more than 50 years, WAGAP has helped people help themselves and reach self-sufficiency. Learn more at wagap.org, or contact WAGAP at (509) 493-2662 or info@wagap.org.
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