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CFPB updates elder financial abuse advisory
The CFPB Wednesday issued an updated advisory urging financial institutions to report suspected elder financial abuse to local, state and federal authorities in addition to filing suspicious activity reports (SARs).
The new advisory also contains best practices to aid financial institutions in preventing and responding to elder financial abuse, which according to a 2019 research report by the agency, has resulted in an average loss of $41,800 among adults over the age of 70 who have been a target.
"The Bureau is renewing its efforts to alert banks and credit unions to elder financial exploitation as they are uniquely positioned to detect that an older account holder has been targeted or victimized, and to take action," said CFPB Director Kathleen Kraninger in a statement. "The Bureau stands ready to work with federal, state and local authorities and financial institutions to protect older adults from abusive financial practices that rob them of their financial security."
Later this month, the agency will co-host a webinar with the Federal Deposit Insurance Corporation to promote ways in which financial institutions and law enforcement can collaborate to address and prevent elder financial abuse.
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.
Reducing elder financial abuse continues to be a priority for federal agencies: Last year, the Department of Justice, CFPB, Federal Trade Commission and other agencies announced a new task force that will mainly focus on fraud against the elderly, servicemembers and veterans.