Banks vigilantly protect seniors from elder abuse

The federal government recently released information detailing financial exploitation of senior citizens. The newly-provided FinCEN data shows that from January-June 2015 Michigan depository institutions reported 187 Suspicious Activity Reports (SARS) filed under the Elder Financial Exploitation heading.

"Michigan bankers care about their elderly customers and take their responsibility to protect senior citizens from financial abuse very seriously," said Michigan Bankers Association (MBA) President and CEO T. Rann Paynter. "Elderly Americans are increasingly becoming targets for financial exploitation. Bankers across Michigan serve as a front-line to safeguard Michigan seniors and their savings. It's important to know the signs of elder and financial abuse."

Along with elder abuse, banks are strongly encouraged to monitor and report on potentially more than 100 various instances of "suspicious activity" designed to protect their customers and their accounts-including suspicion of credit card/debit card fraud, embezzlement, money laundering, wire transfers and identity theft. Banks also monitor for criminal and security issues such as terrorist activities and human trafficking. There were over 7,600 SARS filed in Michigan by bankers and other financial institutions from January-June 2015. These reports are vital to protect customers, deter and detect criminal activity, and safeguard our national and international financial systems.

Since 2011, financial institutions in Michigan and around the country have been reporting on elder financial exploitation and a variety of these other SARS transactions. At that time, the Financial Crimes Enforcement Network (FinCEN) released a new advisory to help financial institutions spot and report on activities involving elder financial exploitation. In response, bankers in Michigan and around the country promoted improved awareness of the issue and have increased training in order to better detect and report suspected financial abuse.

The advisory contains red flags that may come to bank personnel attention through monitoring transaction activity and through interactions with customers or their caregivers. This reporting is meant to complement financial institutions' existing policies and procedures on reporting suspected elder financial exploitation to local and state authorities, to aid in the detection and deterrence by appropriate government authorities of criminal activities.

"Michigan bankers proudly invest thousands of dollars and countless hours of staff training to make sure that seniors and their money remain safe," said MBA Board Chairman Don St. Germaine, president of Baybank in Gladstone, Michigan. "Bankers have always been and remain an important layer of protection for our most vulnerable citizens."

Published: Thu, Sep 24, 2015