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The voice on the phone tells an elder they’ve won a million dollars in a lottery/sweepstakes, and in order to disburse the funds, an upfront payment is needed for tax purposes.
A caregiver or family member continually asks for money in a coercive or threatening manner. If they have access to the elder’s bank account or credit card, they don’t need to ask before making unauthorized withdrawals or credit card purchases.
Bank staffers are often first-line witness to evidence of financial abuse – elders coming to a branch to make large withdrawals, or making frequent large withdrawals with a family member or caregiver accompanying them. But addressing concerns with their elderly customers – and referring concerns with agencies that could help – is a delicate issue.
The state Executive Office of Elder Affairs reported in 2016 that the total number of intakes/cases of elder abuse burgeoned from 18,282 in fiscal 2011 to 24,978 in fiscal 2015, when 7,117 newly confirmed allegations of elder abuse were received. That represents an increase of 37 percent of the total number of elder abuse reports and a 57 percent increase in confirmed allegations compared to fiscal 2011.
In this environment, the Massachusetts Bank Reporting Project is getting a big boost this year in its ability to deliver much-needed support and training to bank and credit union staff on the front lines.
With assistance from the Division of Banking, the two-decade-old public-private program that works with state-chartered banks, credit unions and state government agencies to detect and prevent abuse, is updating training materials to reflect new technology that gives scammers and others with ill intent more access to vulnerable individuals.
Key Recommendations
One key recommendation of the Bank Reporting Project is to assign a single point person in the financial institution to do the actual reporting of suspected elder financial abuse, rather than having every bank branch deal with it in a different way, reducing chances of violating consumer confidentiality. That said, the project also recommends that all front line staff receive training on how to spot abuse and should refer findings to the point person who, in turn, should report it to the Elder Abuse Hotline (1-800-922-2275). In case of an emergency, when the customer is in immediate physical or financial danger, the financial institution should follow its emergency reporting policy.
These rules appear to be sorely needed. Financial institutions’ caution about protecting client confidentiality – and their legal liability if they’re perceived of violating those rules – has historically posed an obstacle to sharing information about suspected abuse, according to elder law attorney Mark W. Worthington of Framingham-based Special Needs Law Group of Massachusetts PC.
“When a bank or financial institution reports [suspected wrongdoing] in good faith, they are protected under the law,” said Massachusetts Banking Commissioner Terence McGinnis. “Some might not know that.”
Bank staff are granted immunity from any charges resulting from reporting abuse, as long as the reporting party did not commit the abuse, and staffers’ identity remains confidential under Massachusetts law, according to information on the project’s website.
Elder abuse reports are sent to a local protective services agency, and a trained caseworker is assigned to investigate the allegations.
“The additional resources that Massachusetts Division of Banks are providing can only enhance our understanding and knowledge of this exploitation,” Berkshire Bank said in a statement. The bank is active in elder fraud prevention efforts, saying it recognizes the importance of spreading awareness and understanding issues surrounding the emotional, physical and financial abuse of elders.
The bank hosted free educational seminars in community centers across its market footprint on World Elder Abuse Awareness Day, June 15, to help promote awareness. Workshops focused on topics including credit/debit card fraud, identity theft and tips for elders to stay alert. The bank said it continues to partner with local senior centers to remain active in supporting awareness initiatives.
The Massachusetts Bank Reporting Project is supported by the Division of Banks, the Executive Office of Elder Affairs, the Office of Consumer Protection and the Massachusetts Bankers Association.
The DOB will also undertake a review of advertising and marketing materials and contracts of reverse mortgage lenders, looking for any deceptive language or illegal practices. State law requires all prospective reverse mortgage borrowers to complete an approved counseling program before obtaining a loan. Borrowers whose income and assets are below certain thresholds are required to obtain the counseling in person.
Cheryl Cannon is the statewide coordinator of the Massachusetts Money Management Program, which aids seniors in financial management through help paying bills or the election of designated payees. If an elder agrees to it, Adult Protective Services can get information from banks. “There’s a non-combative approach we can take to secure [elders’] funds, so abuse does not continue,” she said.
Elders with the capacity to make informed decisions have the right to refuse services.
“It’s so critical to balance the dignity of the individual with [confidentiality],” McGinnis said. He commends the volunteer effort on the part of all sectors in the Division of Banks.
“Even if it’s just one person [we help], it’s worth it,” he said.
