Nacha is expanding its support for banks and financial institutions in addressing elder financial abuse. The organization’s Payments Innovation Alliance has issued new tools designed to help account holders who may be at risk of elder fraud and to raise broader awareness about financial exploitation targeting older adults.
The tools are being released in conjunction with World Elder Abuse Awareness Day (WEAAD), observed annually on June 15. Among them is a checklist to help banks and credit unions assist older customers who may have been exposed to scams.
The guidance encourages banks and FIs to establish clear internal escalation protocols for suspected elder financial exploitation, to be accessible to account holders who have experienced fraud, and to support individuals in reporting attempted scams.
Nacha has also created an infographic highlighting the scale of the issue. In the U.S., adults over 60 lose an estimated $38.5 billion every year due to elder financial abuse, with the average loss of $83,000.
Not Just Strangers
One reason elder fraud is such a concern is that it is often committed by someone the victim trusts. Nacha defines elder fraud as the use of deception, intimidation, or undue influence by a person in a position of confidence to obtain an elderly person’s property or resources. It can also include breaches of fiduciary duty, such as the misuse of a power of attorney or a guardianship appointment.
A major challenge for law enforcement, families of elderly victims, and the financial industry is that scam victims are often reluctant to ask for help, as Tracy Goldberg, Director of Cybersecurity at Javelin Strategy & Research, noted. In many cases, they don’t even want to acknowledge that they’ve been victimized.
Looking for More Help
An AARP study referenced in the Nacha infographic reports that 92% of adults ages 50 and over want employees at their financial institutions to be trained to recognize and prevent financial exploitation. However, the tools used are not always tailored to the specific type of fraud being committed.
“While education surrounding scams has dramatically increased, most educational campaigns are generalized, not only in their messaging, but also in their approach,” said Goldberg. “Older consumers should be targeted with educational campaigns that stress their need to be skeptical of anyone who approaches them with a sense of urgency, and refuses to let them hang up on a caller who seems suspicious.”
