The story of Brooke Astor is one of the most famous cases of financial exploitation in the 21st century. Brook Astor’s grandson, Philip C. Marshall, intervened to put a stop to her abuse. (Philip C. Marshall and EAS Board member Risa Breckman, co-wrote an article to describe the difficult journey concerned others often experience as they advocate for an abused older adult: When Elder Abuse Strikes a Loved One)
Not every victim of elder abuse has a family member, or concerned person, to intervene on their behalf. This article, published in Bloomberg news, describes how banks can, and should, serve as a powerful advocate for victims. They have the ability to recognize financial exploitation when it takes place, stop it, and intervene to bring the abuser to justice.
Stop Financial Crimes Against Older Americans
“In 2006, Philip Marshall had to make a critical decision: turn in his father for exploiting Philip’s grandmother, or do nothing. Philip’s decision to act revealed to the world what remains perhaps the world’s highest profile case of elder abuse. Ultimately, Anthony Marshall was convicted of defrauding his mother, the philanthropist Brooke Astor.
While the million-dollar sums involved in the Astor case were unusual, elder financial abuse unfortunately is not. Greater data sharing among financial institutions, along with specific safeguards against financial fraud, could root out this kind of exploitation of our most vulnerable citizens.
As Americans live longer, more and more will experience cognitive impairment great enough to put them at risk of financial abuse. Consider that by 2030, 20 percent of the population will be at least 65 years old. About 12 percent of people have mild cognitive impairment or dementia by the time they’re 70 to 74, and among those 85 and older, 64 percent do.
People with MCI face two big risks from the people involved in their lives: financial exploitation and outright fraud. Exploitation includes cashing someone’s checks without permission, forging signatures, or improperly using the authority of conservatorship, guardianship or power of attorney. Fraud involves efforts to deceive someone with promises of goods, services or financial benefits that may not even exist. Estimates of the extent of such abuse in the U.S. vary widely — from $3 billion to $36 billion a year — but whatever the present total, the problem stands to grow unless steps are taken.
Banks and other financial institutions can help prevent financial crime against elders at all levels of wealth and income, starting by raising awareness of the problem within their own walls. They should encourage their customers to plan for potential diminished capacity by designating one or more trusted emergency contacts, securing a power of attorney for finances, and consulting a financial manager. Financial institutions can provide read-only access to deposit accounts to enable people’s trusted contacts or financial managers to monitor activity and detect anything improper. Banks should also make a habit of reporting suspicious activity to the U.S. Financial Crimes Enforcement Network. And they should help local adult protective services and law enforcement investigate and prosecute those responsible for wrongdoing . . .”
To Read More, Click Here: https://www.bloomberg.com/view/articles/2018-01-09/stop-financial-crimes-against-older-americans