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New FinCEN report reflects increase in elder financial abuse
New data from the Financial Crimes Enforcement Network's (FinCEN) strategic analysis of Bank Secrecy Act filings regarding elder financial exploitation revealed significant increases in the number of filings reporting elder abuse and the amount of money involved. NAFCU's Elizabeth LaBerge breaks down concerning trends from the report in a new Compliance Blog post.
"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," notes LaBerge, NAFCU's senior regulatory compliance counsel.
In the blog, LaBerge highlights 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," highlights 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 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.
For more on the issue of elder financial abuse and resources for credit unions reviewing their policies, read LaBerge's full blog here. Sign up to receive new Compliance Blog posts in your inbox every Monday, Wednesday, and Friday, courtesy of NAFCU’s award-winning compliance team.