A significant amount of assets, a regular source of income andhome equity are three factors that make elderly consumers targetsfor financial abuse, a Wednesday CFPB report said.

In addition to the report, the bureau issued an advisory on bestpractices for financial institutions looking to protect the elderlyfrom such abuse.

In the advisory, the CFPB recommended financial institutionstrain their staff to recognize abuse targeting the elderlypopulation. Additionally, it said the use of fraud detectiontechnologies can be used to pinpoint suspicious account activityassociated with elder fraud risk.

Further suggestions included offering age-friendly services toassist seniors with planning for potential incapacity, as well asalerts for account activity and opt-in limits on cash withdrawalsor geographic transactions; reporting suspected exploitation toappropriate authorities; and working with local Adult ProtectiveServices and law enforcement to enhance prevention and responseefforts.

During a call that addressed the advisory and report, CFPBDirector Richard Cordray said financial abuse is the most commonform of elder abuse and one of the least reported.

“When seniors fall victim to a scam by a stranger or to theft bya family member, they may be too embarrassed or too frail to pursuelegal action, or even report they have suffered harm,” he said. “Soit is crucial that others know how to look out for them. Elderfinancial exploitation has been called the crime of the 21stcentury.”

He added seniors may be especially vulnerable due to isolation,cognitive decline, physical disability or other healthproblems.

The report said financial abuse costs seniors billions ofdollars per year.

“This action gives financial institutions best practices andtools to protect older consumers from financial abuse,” Cordraysaid. “Banks and credit unions are uniquely positioned to look outfor older Americans and take action to protect them.”

Cordray said while the recommendations are specific andactionable, they are not binding.

“They are simply suggestions we urge institutions to consider inserving their customers,” he added.

Elder financial abuse has undergone additional scrutiny lately,as FINRA proposeda rule that could allow financial institutions to place a15-day hold on some transactions for account holders 65 and older,among others. Additionally, CU Direct launched a new product aimedat targeting identity theft and fraud among elderly credit unionmembers.

The CFPB said consumers who suspect they or a loved one has beena victim of financial exploitation can visit eldercare.gov to finda local adult protective agency and other service providers thatcan help. The bureau also posted a tip sheet on its website toassist consumers to work with their financial institution toprotect themselves from financial abuse.