As a generation of aging Americans faces newfound risk of developing Alzheimer’s disease, some banks and credit unions are implementing new measures to prevent fraud-related elder abuse.
MarketWatch reports that tellers are being trained to spot signs of suspicious behavior, such as coercion by family members or frequent withdrawals of large sums of money.
From MarketWatch:
“They [the elderly] have retirement savings that fraudsters want, which makes the aging population more vulnerable if they are not aware of the latest scams out there,” said Roger Nettie, senior consultant of risk management for the CUNA Mutual Group, a credit union insurer in Madison, Wis. “Credit union members that fall for scams, unfortunately, are usually stuck with their own loss.”
Bank managers, tellers and associates are being taught to report their suspicions to Adult Protective Services, Legal Aid, state attorneys general and, in some cases, even the local police.
But their employers are legally limited in what they can do to keep customers in the early stages of dementia or Alzheimer’s safe from financial abuse. That’s because privacy laws, which vary from state to state, can prevent financial institutions from aiding scam victims.
“The unfortunate reality banks must consider is that one family member could take legal action when a bank informs another family member of fraud in the event that an account is styled as only a single account,” said Scott Mullen, principal with North Highland, a management consulting company that works with the largest banks and credit unions. “There needs to be a mechanism in place, such as a power of attorney on file, which allows the bank to release information.”
The trend toward protecting the financial assets of the elderly comes at a critical time. According to the Alzheimer’s Association, the number of Americans with Alzheimer’s and other dementias is projected to increase dramatically as the elderly population grows. There are currently 5.1 million people age 65 and older in the U.S. living with Alzheimer’s; that number is expected to increase 40 percent to 7.1 million by 2025.
Photo by Alan Cleaver via Flickr CC License
