MAUI, Hawaii - In some countries elderly people are respected and revered for their knowledge and experiences. In the U.S. they're the fastest growing segment of the population who are victims of financial abuse. Every financial institution has a story it can tell about how an employee discovered one of its elderly account holders was being financially abused, said Janet Wilks, program manager of Elder Abuse Prevention speaking at a session on the issue at the "2000 Pacific Sun Educational Conference" sponsored by the California Credit Union League and the Hawaii Credit Union League. Defined as "the illegal or improper use of the resources of an adult age 65 or older by a family member, caregiver, friend or stranger," the problem is exacerbated by senior citizens' tendency to trust and treat people politely. "Credit unions need to educate their elderly members that they shouldn't be so polite to people who call them up on the phone and try to swindle them out of their money in exchange for services or products," Wilks commented. "They need to know it's okay to hang up the phone on someone or, if someone comes to their home to try to convince them to buy into something, that it's okay to say `No' and close the door." Sadly though the figures tell a different story. For example, according to FBI estimates, approximately $10 billion is lost annually to investment fraud and 80% of that is lost to the elderly. We've all heard the stories, said Wilks. When the financial institution notified Mrs. C. that her savings accounts was overdrawn because of her frequent use of an ATM card, Mrs. C. said she didn't know what an ATM card was. She had rarely left her house and had not visited the financial institution for several years due to her failing health. Further investigation into the case revealed that Mrs. C. was being exploited by a young man, the son of her caregiver. He had tricked Mrs. C. into signing an ATM card application. He took the signed application to the financial institution claiming to be acting for her. No one questioned this claim or called Mrs. C. to verify her wishes. The man retrieved the ATM card from the mail, made up a PIN number and began making almost daily withdrawals of $100 to $300. In three months he had depleted Mrs. C.'s savings account. Even when financial abuse against the elderly is exposed most cases are not reported to the police. In the rare instances when cases that are investigated, though the perpetrators may be apprehended and even convicted, the victims' assets are rarely recovered. "We hear so much about the financial exploitation of the poor, but financial abuse of the elderly cuts across all ethnic and financial boundaries," said Wilks. They're particularly vulnerable because they're often dependent on the very people who are victimizing them such as caregivers or family members for everyday practical services such as shopping, housekeeping and transportation. They may feel embarrassed or ashamed that a family member is the culprit, they may fear retaliation, or worry they'll be placed in a nursing home if they admit to being abused and the caregiver is removed. "They are the perfect prey," Wilks remarked. Because of the unique relationship credit unions have with their members, employees are in a unique position to have early knowledge if they suspect one of their members is being victimized, she stressed. Since employees often see situations developing where they believe a member may be at risk, it's important that credit unions develop protocols for employees to report suspicious cases to public authorities while protecting the members' confidentiality. There are two main types of financial exploitation: exploitation by people known to the elderly person such as family members, caregivers, friends or fiduciaries; and exploitation by strangers or scam/con artists. The method of exploitation varies with the type of suspect, Wilks explained. Scams fall into three basic categories - person-to-person scams; mail fraud; and telemarketing fraud. Despite the alarming prevalence of financial abuse of the elderly, there are preventative steps credit unions can take to address the problem. Foremost, said Wilks, credit union employees should be trained to recognize symptoms of financial exploitation and suspicious financial transactions. Among these are an unusual volume of financial transactions, transaction activity that's inconsistent with a member's usual habits, suspicious signatures on checks or other documents, or sudden increases in incurred debt when the elderly member appears unaware of a transaction. Credit unions should emphasize regular and thorough training of all personnel, she continued, since employee awareness is essential to detecting financial exploitation. Just as important is the establishment of internal protocols for handling suspicious situations. In most cases, Wilks advised, once a teller has recognized a possible financial exploitation situation, senior staff should become involved. Elder Abuse Prevention has also designed an "Authorization for Release of Information for Fraud Prevention" form and encourages credit unions to have all their members complete in case a teller suspects fraudulent use of a member's accounts. "We all like to think of our so-called senior years as being the golden years," said Wilks. "Unfortunately, due to the financial exploitation of the elderly, this is not the case for many." -
ekingoff@cutimes.com
