As the number of older Americans grows, so do the reported cases of fraud perpetrated on them. With June recognized as Elder Abuse Awareness Month, it’s a good time to learn more about how to prevent and recognize financial scams.
What is Elder Fraud?
The U.S. Department of Justice describes elder abuse as an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult, including financial exploitation and fraud.
In 2022, over 82,000 victims over the age of 60 reported losses of almost $3.1 billion to the IC3, the Federal Bureau of Investigations office responsible for receiving elder fraud complaints.
What are the warning signs of financial abuse?
The key to spotting financial abuse is a change in a person’s established financial patterns. The American Bankers Association (ABA) shares these warning signs:
- Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals.
- ATM withdrawals by an older person who has never used a debit or ATM card.
- Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
- Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
- New “best friends” accompanying an older person to the bank.
- Sudden non-sufficient fund activity or unpaid bills.
- Closing Certificate of Deposits (CDs) or accounts without regard to penalties.
- Uncharacteristic attempts to wire large sums of money.
- Suspicious signatures on checks, or outright forgery.
- Confusion, fear or lack of awareness on the part of an older customer.
- Refusal to make eye contact, shame or reluctance to talk about the problem.
- Checks written as “loans” or “gifts.”
- Bank statements that no longer go to the customer’s home.
- New powers of attorney the older person does not understand.
- A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation.
- Altered wills and trusts.
- Loss of property.
What should you do if there is financial abuse?
If you suspect financial abuse, talk to your family and friends to attempt to determine what exactly is happening. If confirmed, the ABA also recommends:
- Reporting the elder financial abuse to your financial institution and utilizing their resources to prevent future incidents.
- Contacting Adult Protective Services in your town or state to help.
- Reporting all instances of elder financial abuse to your local police.
For more information on preventing elder financial abuse and warning signs, check out the FBI's elder fraud tips. If you suspect fraud on a Busey account, contact your local service center or our Customer Care team immediately.