WASHINGTON—New data from the Financial Crimes Enforcement Network's (FinCEN) strategic analysis of Bank Secrecy Act filings regarding elder financial exploitation has revealed significant increases in the number of filings as well as the amount of money involved.
"This increase in filings could mean a significant uptick in elder financial exploitation activity, but it could also mean that financial institutions are watching more closely and reporting more often than they used to," noted Elizabeth LaBerge, NAFCU senior regulatory compliance counsel.
LaBerge noted findings from the report related to money services business (MSB) scams, such as romance scams, person-in-need scams, and prize/lottery scams, and theft.
"While MSB scams are most often perpetrated by a stranger, SAR reports of theft most often involve the elder’s family members or caregivers," stated LaBerge. "Frequently, reports identified the elder person as suffering some type of incapacitation such as dementia."
Reducing elder financial abuse continues to be a priority for federal agencies and NAFCU noted it has met with both the CFPB and NCUA to discuss resources available to credit unions to detect and prevent elder financial abuse. The association also has a webinar on the issue available on-demand, as well as various compliance resources.