23 THE NAFCU JOURNAL May–June 2023 RESOURCES TO HELP PROTECT OLDER MEMBERS ■ The NAFCU website contains reports, blogs and other material, including the webinar “5 Ways You Can Help Older Members Avoid Fraud and Financial Exploitation.” ■ The CFPB offers guidance on identifying and reporting financial exploitation as well as educational tools and materials for use in staff and member education at www.consumerfinance.gov/ olderamericans. ■ The U.S. Department of Justice’s Elder Justice Initiative provides news, guides and tools at www.justice.gov/elderjustice. ■ The NCUA posts letters and guidance on issues related to elder financial exploitation and credit unions at www.ncua.gov. ELDER ABUSE AWARENESS MONTH June is recognized as Elder Abuse Awareness Month, in conjunction with World Elder Abuse Awareness Day, which was launched June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations. The purpose of the day—and the month—is to provide an opportunity for communities around the world to promote a better understanding of abuse and neglect of older persons by raising awareness of the cultural, social, economic and demographic considerations affecting elder abuse and neglect. consider offering age-friendly services that can enhance protections against financial exploitation,” said Royster. “For example, credit unions can encourage the use of trusted contacts—both by making sure they offer this option and by encouraging members to use it.” “The trusted contact initiative is supported by the Financial Crimes Enforcement Network and allows a member to identify another person who we can contact if we suspect that the member is a victim of fraud,” said Akin. A trusted contact is an emergency financial contact who can step in to help protect the account holder. This can be a helpful service for account holders and can also signal to consumers that the institution is taking steps to help protect their assets and prevent financial exploitation. “CFPB has an advisory for financial institutions that includes several voluntary recommendations about alerts to trusted contacts,” said Royster. “These recommendations may be helpful for credit unions that implement this practice. The advisory provides information about developing relevant policies and procedures, educating account holders, and training and supporting staff.” Another example of age-friendly practices include credit unions reporting suspected financial abuse to authorities such as local law enforcement and/or Adult Protective Services, as appropriate under relevant state laws, suggested Royster. “There are many promising practices that can help credit unions prevent elder financial abuse and intervene effectively when it occurs.” Staff and Member Education is Critical In 2016, CFPB released an advisory and a report to financial institutions on preventing and responding to elder financial exploitation. The report contains recommendations that financial institutions could voluntarily practice to help prevent elder financial abuse or to intervene when identified. “CFPB released an update to those recommendations in 2019, which is focused on how financial institutions can best report suspected elder financial abuse to appropriate authorities, such as Adult Protective Services and law enforcement,” said Royster. “The update also provides an overview of recent federal and state legislative changes, including an overview of the Senior Safe Act and charts of state statutes related to mandated reporting of suspected elder financial abuse, transaction holds or delays in disbursing funds when elder financial abuse is suspected, and sharing of financial records with law enforcement and Adult Protective Services. These recommendations can help credit unions assess their policies and procedures and decide whether additional measures might be helpful to better prevent elder fraud.” Educating staff, regulators and members is a critical component of fraud prevention, said Akin. “NAFCU has worked for many years to ensure that older credit union members are safe from fraud and that their financial well-being is protected. Webinars, blogs and other tools that can be used to continue training staff and educating others can be found on our website,” he said. “NAFCU members can also join the NAFCU Compliance, Risk & BSA Network to post best practices and share information with other NAFCU members.” Education, use of trusted contacts and awareness of what to do when fraud is suspected can help credit union staff know how to protect members. “These types of interventions can help prevent financial exploitation and decrease the fraud losses sustained by older adults,” said Royster. “We know credit unions work hard to recognize elder fraud and protect their members, but, unfortunately, the nature of elder financial exploitation and the never-ending creativity of scammers means there are always new opportunities for financial institutions to adapt and improve their response to this issue.”
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