By Ray Birch
WASHINGTON—How serious is elder financial abuse? The average theft is $120,000. But new research is revealing just how much of a dent staff training can make in stopping the crime.
Credit unions across the country are certainly aware of the threat, but may not realize just how much of a difference training can make in giving employees the skills and confidence needed take action as soon as they suspect something suspicious.
Elder financial abuse is on the rise on the U.S., and even though authorities say it’s an under-reported crime, it still costs older Americans $36.5 billion annually, according to at least one estimate.
“The research makes it clear that effective training makes all the difference when it comes to protecting elderly members,” said Jilenne Gunther, director of BankSafe training for AARP. “Stopping the outflow of funds is so critical, because once the money is gone in these cases, it’s often never recovered.”
That average theft of $120,000, said Gunther, “often represents some people’s life savings, and at this point in their lives they cannot recover from this crime.”
According to a research report published by AARP and Virginia Tech’s Center for Gerontology, dedicated training for employees of banks and credit unions significantly strengthens the ability to stop financial exploitation incidents before money leaves consumers’ accounts.
What the Research Shows
“The research shows there is a huge increase in knowledge around elder financial abuse—how to spot it and how to take steps to prevent it,” said Gunther, calling the study the first of its kind. “We have not had research before on how training can improve the ability of banks and credit union front-line employees to stop this terrible crime. Now we do. I’ve always known training can make a difference, now the research shows it can have a big effect.”
The research shows employee test scores improved dramatically after the online AARP BankSafe training, which includes interactive modules, compared to the pre-training test.
“Employee knowledge increased dramatically, which really helps employees spot the crime. But what’s more important is their confidence levels increased,” said Gunther, who explained the research included a control group that did not take the training. “The research shows those who took the training had four times the confidence to take action on this crime when compared to the control group.”
‘Substantial’ Differences
Gunther pointed to the “substantial” difference in the money the test group saved consumers who might otherwise have become victims of elder financial abuse compared to the control group.
“They saved 12 times more money per employee; $865 compared to $70,” she said. “The training helps staff to detect the crime and stop it. Also, more than four times the number of suspected incidents of financial exploitation were reported by those who received BankSafe training versus those who hadn’t.”
Gunther restated the importance of staff having the confidence to take action immediately as the biggest reason for the results.
“When you see a member who may be experiencing exploitation, taking that immediate action puts the credit union in the best position to prevent their member’s money from leaving the account,” she said. “For example, freezing funds, delaying the process, asking additional questions, using account notes, separating the member from the perpetrator, explaining the concerns, and assisting the member in finding help.”
Action Steps to Take
She pointed to the action steps of employees that prevented the outflow of money during the study, and the percentage of times the steps were taken:
- Refusing the transaction—84%
- Delaying the suspicious transaction—75%
- Placed a hold on the account—71%
- Added notes to the account—61%
- Placed withdrawal limits on the account—60%
- Asked questions—58%
- Contacted an authorized third party—58%
- Flagged the account—57%
- Explained concerns to the customer or member—54%
- Escalated the case to a supervisor or risk management—51%
‘Mission Critical’
Gunther said defending older Americans from financial exploitation is “mission critical to AARP, and we know that the stakes couldn’t be higher.”
“Look at the data and we see the rise in the population of older Americans and we're also seeing a rising number of elder financial abuse complaints,” she said. “This crime is affecting a lot of people, and it can be those who are not as old as you might think—50 years of age, sometimes. So this is a big number of people who are at risk.”
And Gunther said the perpetrators are skilled.
“They are really good at what they do and they will talk with anyone and everyone—they like to go after people who are especially weak, like people who have health issues and people who are socially isolated,” she said.
Another ‘Sad’ Reality
Family members, too, are often the perpetrators.
“It’s sad, but we see this a lot,” Gunther said. “Some people, even good people, can turn to the dark side.”
Gunther hopes more financial institutions will utilize the free one-hour online BankSafe training, which can be accessed here: www.aarp.org/BankSafe. Even if an employee does not take the training, Gunther hopes at least they will slow down, pay attention to details, and at least have the thought this crime could be occurring. She said tellers moving too fast is often a reason this crime slips by.
“Just look for little things that stand out, things that may not seem right or be out of place,” she said. “Don’t be afraid to ask questions and, of course, don’t be afraid to take action.”