Elder Fraud Issues and Prevention

Admin. On Aging, Oct 06, 2006

Financial institutions are often the first to recognize abuse, fraud, and exploitation against elderly and vulnerable adults, which is often perpetrated by a relative or trusted caregiver. The immediate, and often regular contact, financial institutions have with their older customers puts financial institutions in a unique position to report suspected fraud to APS for further investigation.

Recognizing this, the Philadelphia Corporation for Aging APS office used AoA funding to hire and train a financial exploitation investigator with experience in fraud and financial crimes. The APS office then developed a partnership with Wachovia Bank for cross-training of bank personnel and increased sharing of records to stop financial exploitation of seniors. This partnership had remarkable results and was later shared as a successful practice with the fraud reduction committee of a national bank consortium, known as the BITS Financial Services Roundtable. The bankers responded with enthusiasm and committed to expanding upon this model for national dissemination within the banking community.

Over 100 financial institutions are represented on the BITS Roundtable, including Wachovia, Bank of America, Citigroup, and JP Morgan Chase. Under the auspices of the BITS Fraud Reduction Steering Committee, and with technical assistance from AoA and other members of the aging network, such as the National APS Association, and AARP, the BITS Vulnerable Adult Project Team developed and distributed the BITS Fraud Prevention Toolkit: Protecting the Elderly and Vulnerable from Financial Fraud and Exploitation, designed to address special needs for which financial institutions are uniquely suited to assist. The Toolkit provides information to support the implementation or improvement of a financial institution’s internal program for education and awareness about abuse, fraud, and exploitation against the elderly and vulnerable adults.