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Elder Abuse Training Materials
The Elder Abuse Training Materials
Training Video
Elder Financial Abuse and the Need for Response
What is Financial Elder Abuse?
How to Spot Possible Cases of Financial Abuse
Reporting
Legal Issues
Other Ways for Banks to Help
Preventing Elder Financial Abuse
APPENDIX A: APS INVESTIGATIONS
Resources
APS Contact List
Sample Fraud Alert Form
Click here to
print a pdf of the Elder Abuse Training Book.
Elder Financial Abuse and the Need for Response
Recent statistics from the American Association of Retired Persons
(AARP) indicate that the population of older Americans (65+ years
old) is expected to at least double to more than 71 million by the
year 2030. These same statistics indicate that, in 2002, one in
eight Americans was an older American.
With these statistics and projections, it is clear that the U.S.
should be preparing itself for the many changes that will accompany
this explosion in the older population. California, as the state
with the largest population of older Americans, needs to be particularly
prepared and aware of the issues that will come to affect its older
citizens. One such issue is the problem of elder financial abuse.
What Is Elder Financial Abuse?
Elder financial abuse is a specific form of a more general crime,
the crime of financial abuse. Financial abuse is defined in California's
Elder Abuse and Dependent Adult Civil Protection Act (Welfare &
Institutions Code section 15600 et seq.) as "occurring when
any person or entity takes, secretes, appropriates or retains real
or personal property of an elder or dependent adult with the intent
to wrongfully use or defraud, or who assists in doing so."
Elder financial abuse is, of course, the perpetration of this crime
against elder citizens and dependent adults, who may be especially
vulnerable due to physical or mental incapacity.
It is important to remember that it is one of the roles of the
bank employee to help reduce fraud, not to keep customers from making
informed, yet ill-advised decisions. There is a difference between
keeping a customer from being victimized and saving a customer from
his or her own foolishness. The "Legal Issues" section
clearly spells out the role of the bank employee. Before undertaking
any elder financial abuse training program, CBA encourages every
financial institution to intently review the "Legal Issues"
section and consult with its own legal counsel.
Common elder financial abuse scenarios
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Misappropriation of income or assets - Perpetrator obtains
access to an elder's Social Security checks, pension payments,
checking or savings account, credit card or ATM, or withholds
portions of checks cashed for an elder.
-
Charging excessive rent or fees for service - Perpetrator
charges an elder an excessive rent or unreasonable fees for
basic care services such as transportation, food, or medicine.
-
Obtaining money or property by undue influence, misrepresentation,
or fraud - Perpetrator coerces an elder into signing over
investments, real estate or other assets through the use of
manipulation, intimidation or threats.
-
Improper or fraudulent use of the power of attorney or fiduciary
authority - Perpetrator improperly or fraudulently uses
the power of attorney or fiduciary authority to alter an elder's
will, to borrow money using an elder's name or to dispose of
an elder's assets or income.
-
Pigeon drop - Perpetrator claims to have found a sum
of money and offers to split it with an elder provided the elder
first withdraws an amount equal to his or her share as a sign
of good faith.
-
Fake accident ploy - Perpetrator convinces an elder
that the elder's child has been seriously injured or is in jail
and needs money for medical treatment or bail.
-
Telemarketing and mail fraud - Perpetrator persuades
an elder to buy a valueless or nonexistent product, donate to
a bogus charity or invest in a fictitious enterprise.
-
Fake prizes - Perpetrator tells an elder that he or
she has won a nonexistent prize and either asks the elder to
send a check to pay the taxes on this nonexistent prize or obtains
the elder's credit card or checking account number to pay for
shipping and handling charges for the prize.
-
Unsolicited work - Perpetrator arrives unexpectedly
at an elder's residence and offers to perform work for a reasonable
fee; after starting the work, the perpetrator insists that the
elder pay more than originally agreed before the work will be
completed.
Just as there are ways to prevent other crimes, there are ways
to prevent elder financial abuse from occurring. Consumer education
is perhaps the best weapon against elder financial abuse and there
are many organizations that are working diligently to make sure
that messages about elder financial abuse and its prevention are
being heard by older Californians.
There is also a role for the banking industry to play in the prevention
of elder financial abuse and it's a role that we take seriously.
Because of the regular contact many older Californians have with
the personnel in bank branches, front-line bank employees may observe
suspected cases of elder financial abuse. By asking careful questions,
while observing legal limits, bank employees can work with law enforcement
and county Adult Protective Service offices to keep older Californians
from being victimized.
How to Spot Possible Cases of Financial Abuse
The following are some common "red flags" of which front-line
and supervisory bank personnel should be aware to help them determine
whether elder financial abuse may be occurring:
Your elder customer:
-
Engages in bank activity that is erratic, unusual or uncharacteristic.
-
Withdraws large sums from his or her account in a secretive
manner.
-
Engages in bank activity that is inconsistent with the older
person's ability (such as use of an ATM card despite the fact
that the customer is house-bound).
-
Suddenly acquires new acquaintances, particularly those who
take up residence with the customer.
-
Makes changes to property titles, will or other documents and
is confused about the consequences of those changes.
-
Executes a power of attorney and is confused by the consequences
of this action.
-
Doesn't have amenities for which he or she can pay (complains
about having no heat despite the fact that he or she can afford
to have it).
-
Indicates that some of his or her property is suddenly missing.
-
Indicates that he or she is being evicted.
-
Has obvious health or mental problems that are not being treated.
-
Indicates that his or her mail is no longer being delivered
to the customer's home.
-
A normally friendly customer begins to withdraw socially from
bank employees or is afraid to engage in conversation with them.
-
Consistently accompanied by someone who encourages him or her
to withdraw large amounts of cash or is not allowed to speak
for him or herself while conducting business at the bank.
-
Afraid of the person who accompanies him or her to the bank
or is worried that he or she will be harmed for not giving money
to a caregiver or companion.
Other warning signs of potential elder financial abuse:
-
Customer frequently forgets items needed to conduct business,
such as a checkbook, deposit slip.
-
There is a noticeable change in the appearance and grooming
of your customer.
-
Customer becomes disoriented, doesn't know where he or she
is or indicates that he or she is forgetting where things are.
-
Customer becomes paranoid about money in his or her accounts
and the bank's handling of this money (which may trigger a review
by a professional agency to determine whether or not there was
any validity).
-
Customer brings strangers into the bank to assist in conducting
business.
- Customer's mood or disposition changes dramatically, or the
customer begins to fear bank employees.
Reporting
Banks want to do the right thing when they observe suspected elder
financial abuse, yet this area involves complex legal and customer
relations considerations. California law encourages banks to report
suspected elder abuse by providing some legal protections. In addition
to reporting suspected elder financial abuse, banks may consider
not processing a transaction requested by the elder or the elder's
representative. An elderly customer may be offended if a bank insinuates
that the elder is being victimized. The customer's family may likewise
take offense if a bank questions a transaction. For these reasons,
it is important that banks adopt and strictly adhere to procedures
for handling suspected elder abuse. The legal considerations are
detailed later in the "Legal Issues" section What follows
are reporting procedures that banks may want to adopt, after consulting
as appropriate with legal counsel. Banks should be aware that in
certain circumstances, it may be appropriate to make a report to
APS and file a Suspicious Activity Report under federal law. See
the "Legal Issues" section for further information on
when an SAR may be required.
First Steps
The following steps are suggested to help bank tellers determine
if questionable transactions should or should not be processed:
-
The teller should attempt to learn the reason for large
transactions or frequent withdrawals. If the withdrawal
is unusually large for the elder, ask the elder (not the person
accompanying him or her) the reason for the change in activity.
If the elder is prevented from answering or the person accompanying
the elder answers, this may be a sign of financial exploitation.
-
The teller should check authorization and documentation
to act for the elder. It is common for people who commit
financial exploitation to exaggerate about their authority to
act for an elder. The suspect may claim to be helping the elder
out or may explain that the elder is unable to visit the bank
in person. It is important to check all documentation including
signature cards, guardianship and Power of Attorney to be sure
that the person claiming to act for the elder has the authority
to do so.
-
The teller who suspects fraud should contact a supervisor
immediately. Together, the supervisor and teller can review
the account history, the pattern of transactions, and the transaction
in question to determine if the transaction should be processed,
stopped or reported to bank security or a senior bank officer.
-
The teller may choose to explain to the elder that a supervisor
must review large or unusual transactions.
The following steps are suggested to help bank supervisors
determine if questionable transactions should or should
not be processed:
-
The supervisor should separate the customer from any companion
so that the supervisor is able to speak with the elder alone.
The elder who is prevented from speaking for himself or herself
is a potential fraud victim.
-
The supervisor may warn the customer of the dangers of carrying,
withdrawing or wiring large amounts of cash. Some banks may
decide to offer customers a fraud alert form (see samples in
the "Resources" section).
-
The supervisor should notify a senior officer of the bank of
any questionable transaction.
-
If an elder is thought to be in immediate physical danger,
banks may want to notify law enforcement. If the customer is
in immediate danger of losing his or her money, banks may wish
to consider delaying the transaction and confer with legal counsel
or a senior officer of the bank. Banks may already have other
established procedures for dealing with such situations, in
which case, those procedures should be followed. The senior
bank officer also has the ability to refuse to complete the
transaction, but this brings with it some legal concerns and
possible consequences (see the "Legal Issues" section).
Employee Response Checklist
-
Learn the reason for large transactions or withdrawals.
-
Check authorization and documentation to act for elder customer.
-
Notify a supervisor immediately.
-
Gather as much evidence as possible to assist in any resulting
investigation.
-
Consult with a senior bank officer when necessary.
-
Ask elder customer to speak with a senior bank officer.
-
If customer is in immediate danger, notify police or call APS.
Contacting authorities and reporting procedures
Each bank should develop a written protocol for reporting suspected
elder financial abuse. The protocol should include the following:
-
When the teller has a concern, whom do they tell and when should
a supervisor or other senior officer be told?
-
Who will make the report to the local or state agencies?
-
What role, if any, does the designated senior officer have
in the reporting of suspected elder financial abuse?
-
What information should be gathered and provided to local or
state agencies or law enforcement?
Remember: Financial institution personnel are not required to prove
that elder abuse is taking place - that is the job of local and
state agencies and law enforcement. The proper role of bank employees
is to report suspected cases of elder financial abuse. Though bank
employees may be in a position to help identify potential cases
of elder financial abuse, there is no expectation that they will
become experts on proving the existence of elder financial abuse.
Sample reporting procedures
To help financial institutions develop their own reporting protocols,
CBA suggests consideration of the following as a suggested set of
reporting procedures:
-
Employee or branch manager makes an internal report (may be
oral) to a designated senior officer of the suspicious circumstances
as soon as possible, but employee does not contact authorities
directly
-
The designated senior bank officer reviews internal report,
determines whether or not reasonable cause exists to believe
that exploitation is occurring, and may complete a written report
for the financial institution's internal records.
-
The designated senior bank officer makes an oral report of
suspected abuse to Adult Protective Services as soon as possible,
if appropriate. Oral reports should include:
-
Name, age (or estimated age), address and telephone number
of elder;
-
Name, relationship and address of suspect if known;
-
Description of suspicious circumstances;
-
Bank name, office address and name of employee who made
referral; and
-
Name of any other agencies or authorities involved.
-
Senior bank officer may alert other bank branches to cases
of suspected elder financial abuse.
-
After oral notification, senior bank officer may submit a written
report to APS or law enforcement, or file a federal Suspicious
Activity Report (SAR).
NOTE: For more information on how APS may investigate reported
cases of suspected elder financial abuse, please refer to "Appendix
A - APS Investigations."
Legal Issues
California law regarding elder financial abuse
California has adopted the Elder Abuse and Dependent Adult Civil
Protection Act (Welfare & Institutions Code section 15600 et
seq., or the "Act").
The Act defines "financial abuse" as occurring when any
person or entity takes, secretes, appropriates or retains real or
personal property of an elder or dependent adult with the intent
to wrongfully use or defraud, or who assists in doing so. It protects
both elders 65 and over, and dependent adults. A "dependent
adult" is a California resident between the age of 18 and 64
who has physical or mental limitations that restrict his or her
ability to carry out normal activities, or to protect his or her
rights.
The Act defines reporters of possible abuse as either "mandated"
or "non-mandated."
"Mandated reporters" include any person who has assumed
full or intermittent care or custody of an elder or dependent adult,
regardless of compensation or license, elder or dependent adult
"care custodians," health care practitioners, employees
of Adult Protective Services and law enforcement officers. Failure
of mandated reporters to report is a misdemeanor.
All other persons, including financial institutions and their employees
as such, are "non-mandated" reporters, if they know, or
reasonably suspect an elder or dependent adult has been, or is in
the process of becoming, a victim of abuse of any kind.
The Act provides that a non-mandated reporter of known or suspected
elder or dependent adult abuse shall not incur civil or criminal
liability as a result of a report, unless it can be proven that
a false report was made and the person knew it was false.
Non-mandated reporters, like financial institutions and financial
institution employees, have only two reporting options to be within
the qualified safe harbor of the Act: to report to either county
Adult Protective Services (APS), or a local law enforcement agency,
including a prosecutor's office.
In addition, non-mandated reporters should be able to show that
reports have been made upon reasonable suspicion. "Reasonable
suspicion" includes " . . . an objectively reasonable
suspicion that a person would entertain, based upon facts that could
cause a reasonable person in a like position, drawing when appropriate
upon his or her training and experience, to suspect abuse."
The kind of training contained in this guide is critical, not only
to teach line staff to recognize and act appropriately to signs
of financial abuse, but to be able to articulate the specific reasons
for the suspicion.
Sometimes a customer may wish to carry out a transaction even though
financial institution staff have expressed concern or made a report
to APS. Before processing the transaction, office staff should consult
closely with a senior manager and/or legal counsel to evaluate available
options, including giving the customer a written warning and/or
refusing the request.
Those readers with responsibility for designing or managing a program
for reporting of financial abuse of elders, or dependent adults,
should always work closely with their own counsel and operations
risk management staff to tailor the approach to the institution's
own procedures and risk considerations.
Federal law regarding suspicious activity reports
In addition to reporting suspected elder abuse to Adult Protective
Services, financial institutions may be required to file a Suspicious
Activity Report (SAR) with the federal government. Federal law (31
U.S.C. 5318(g)) requires financial institutions to file SARs in
the instances noted below. Federal law also prohibits notifying
any person involved in the transaction that the financial institution
has made a report. The SAR must be made promptly after detecting
any known or suspected violation of law or regulation involving
the following:
-
Insider abuse involving any amount. An SAR would be
required if a financial institution employee, director, officer,
or agent committed or aided the commission of suspected financial
elder financial abuse.
-
Violations aggregating $5,000 or more, where a suspect can
be identified. An SAR would be required if one or more financial
elder financial abuse transactions aggregating $5,000 or more
are conducted through the financial institution AND a suspect
can be identified.
-
Violations aggregating $25,000 or more, regardless of whether
a suspect can be identified. An SAR would be required if
one or more financial elder financial abuse transactions aggregating
$25,000 or more are conducted through the financial institution,
even if no suspect can be identified.
-
Transactions aggregating $5,000 or more that involve potential
money laundering or violations of the Bank Secrecy Act.
An SAR would be required if one or more transactions aggregating
$5,000 are conducted in order to disguise funds or assets derived
from financial elder financial abuse.
Other Ways for Banks to Help
-
Develop and distribute educational materials alerting customers
to scams and how to recognize the potential for elder financial
abuse.
-
Conduct senior seminars or other presentations on elder financial
abuse. (CBA can assist you in putting together these types of
presentations.)
-
Generate media attention on the issue of elder financial abuse
and its prevention.
-
Stay apprised of current trends in elder financial abuse and
techniques for stopping it.
-
Sensitize employees to abuse so that they recognize and report
it.
-
Train appropriate personnel in techniques for interviewing
older customers.
-
Offer older customers safe alternatives with banking services
designed to meet their special needs.
-
Conduct regularly scheduled visits and offer limited banking
services at places convenient to older people, including senior
centers and housing providers.
-
Take a proactive approach to developing new procedures and
product lines, including:
-
Mechanisms for detecting unusual account activity;
-
Alerts on accounts;
-
Procedures for verifying suspicious transactions; or
-
Protected accounts for seniors.
Preventing Elder Financial Abuse
The following tips may be useful to your customers in helping them
be more aware of and preventing elder financial abuse:
-
Use direct deposit for all checks.
-
Do not leave valuables in plain view.
-
Sign your own checks and do not sign "blank checks,"
even for family members.
-
If someone is helping you to manage your finances, get a trusted
third person to review your bank statement.
-
Don't sign anything without reading it carefully.
-
Do not lend any money in return for a general promissory note.
-
Do not sign over money or property to anyone in return for
care, even a family member or friend, without having the agreement
reviewed by an attorney.
-
Establish a relationship with the personnel at your bank.
-
Cultivate friends of all ages so you maintain a strong support
network.
-
Become familiar with resources in your community designed to
help older people and their families.
-
Execute a Power of Attorney that will grant financial decision-making
power to a trusted friend, relative or attorney. Make sure you
know and trust this person. A Power of Attorney can be as limited
or as broadly defined as you wish and can be revoked at any
time. Give your bank a copy of this.
-
Put all financial instructions in writing and be specific.
-
Keep accurate and complete financial records of all transactions.
-
Gather all important documents together (wills, insurance policies
and bank account information) and tell someone you trust where
these documents are kept.
-
Never give out credit card numbers over the phone unless you
placed the call.
-
Never give out your Social Security number or bank account
number over the phone.
-
Don't make donations to charities you don't know.
-
Get several estimates before you have any work done to your
home.
-
Do not pay for any work in advance of its completion and remember
that all contractors must be licensed by law.
-
Do not pay cash to persons you hire.
-
If something seems "too good to be true" (such as
being told that you won a prize for a drawing you did not enter,
or that someone can get you a 100% return on your investment),
it is probably a scam.
After You Report - What Happens Next
When the bank places the call to APS, it should quickly state that
the call is regarding possible elder financial abuse, which will
let APS know that a quick response is needed. The APS agency will
ask the bank employee details about the situation. For further information
about how APS handles the report of suspected elder financial abuse,
please see "Appendix A: APS Investigations." APS may contact
the financial institution for further information during the course
of its investigation.
APPENDIX A: APS INVESTIGATIONS
The APS investigator will proceed to make an unannounced on-site
visit to the alleged victim (unless there are circumstances which
make that unadvisable) and contact anyone having information that
could shed light on the situation. The elder will be interviewed
alone. The APS investigator might call law enforcement. All relevant
documents and records will be sought.
The APS investigator will determine if there is any wrongdoing,
offer assistance to the victim and take steps to correct the situation.
If, however, the elder seems clear about his or her decision, although
it may not be a prudent one, APS believes that the elder's right
to self-determination is a mandate.
The APS agency can also respond to calls about the following:
-
Neglect - Failure to provide basic care
-
Physical abuse - Excessive force, physical assault
-
Psychological abuse - Threats, denial of civil liberties
-
Sexual abuse - Forced or coerced sexual contact
-
Abandonment - Desertion, withdrawal of duties
-
Self-Neglect - Inability to care for self
The complainant's name and the investigation report are confidential
unless ordered released by a court. The elder can review parts of
the report upon request.
Services offered the elder can include, but are not limited to:
case management; assistance with financial, legal, housing and medical
needs; and assistance with money management. If a crime has been
committed, the APS agency will work with law enforcement and the
District Attorney's office on possible prosecution and restitution.
Civil action may also be initiated.
APS Investigation Guidelines
The following guidelines on how APS investigates reports of suspected
elder financial abuse are from the Goldman Institute on Aging's
San Francisco Consortium for Elder Abuse Prevention:
APS Guidelines for Investigating Financial Abuse:
-
Interview victims and alleged abusers separately.
-
Determine the relations between the parties.
-
Is the suspect a member of the victim's family
-
Is he or she in a position of trust?
-
Does he or she live with the victim?
-
Determine the extent of the victim's estate, including real
properties, bank accounts, certificates of deposit, stocks,
home furnishings, personal belongings, and vehicles.
-
Find out who owns the victim's home, whose name is on the deed,
who pays the rent and who pays the taxes.
-
Determine whether the victim is literate.
-
Find out whose names are on bank accounts, investment accounts
and stocks.
-
Find out who is the representative payee, attorney-in-fact
or guardian.
-
Find out who pays the bills.
-
Found out how the older person's pension, Social Security or
other income checks are received and deposited in the bank.
-
Secure samples of the victim's and the alleged abuser's signatures.
-
Determine what documents signed by the victim have placed the
estate in the suspect's control. These may include Powers of
Attorney, bank signature cards or vehicle pink slips.
-
Get copies of whatever documents were signed.
-
Collect evidence from other agencies.
-
Check for previous criminal charges against the alleged abuser.
-
Determine the victim's mental status.
-
If the person is incapacitated, or his or her capacity is questionable,
contact family members, friends or service providers to obtain
mental health evaluations and histories. These should include
information about the length of time that the victim has had
diminished capacity in order to determine if he or she was able
to give consent at the time it was given.
-
If questionable purchases have been made, find out the value
of the purchases, by and for whom they were made, the value
of the purchases in relation to the abuser's salary, and whether
there has been a history of gift giving.
-
Determine whether the older person's estate is still at risk
of theft, misappropriation, or embezzlement. If so, secure the
estate as soon as possible.
Follow the funds! Determine who has (or had) possession of all
misappropriated funds or property.
Follow-up on Misused Bank Accounts
-
Contact the bank immediately and request that it "flag"
the account, and observe with caution.
-
Access information regarding the account by visiting the bank
with the client. If the client is homebound and hasn't granted
anyone power of attorney, have the client sign a release of
information form for the bank or arrange a home visit by bank
personnel.
-
Close the misused account and have the client open a new account.
This can be done in person or via a letter signed by the client.
Make sure any direct deposits are transferred to the new account.
-
Request copies of past canceled checks, bank statements, and
withdrawals to look for forgery or unusual activity. If forgery
or misuse of funds is apparent, the client can sign an affidavit
with the bank and it will be investigated. The police or FBI
may get involved at this point.
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