How and why financial institutions can help
As the baby boomer population quickly becomes the largest senior demographic in American history, there is a growing concern about keeping their hard-earned investments safe. According to a recent report, the U.S. senior community loses an astonishing $53 billion annually to both fraudulent and deceptive practices. This type of preying on the elderly is known as”elder financial abuse,” and financial institutions are in the perfect position to help. First, let’s look at the three types of financial elder abuse:
- Financial Exploitation
This type of exploitation is legal but highly unethical, and consists of deceiving or convincing seniors to make poor financial decisions or give their money away.
- Criminal Fraud
This type of activity is clearly illegal, and includes identity theft and mail fraud.
- Caregiver Abuse
This refers to financial theft or deception by someone trusted – whether it be a family member, healthcare worker, or even a financial manager.
How banks and credit unions can help
As institutions that have built long-term relationships with seniors and their children, banks and credit unions are perfectly positioned to help stem the tide of financial elder abuse. But how to do so? Financial education is a big part of the solution. Both elders and their caregivers feel confident that the information they receive from their bank or credit union is both honest and understandable – but getting the information to them can be a challenge.
In the digital age, where some seniors may be housebound but accustomed to surfing the Web, while others might feel more comfortable visiting their local branch, financial education must be a two-pronged approach. The first prong includes providing digital programming that can be accessed by boomers and their children – anywhere, anytime. The second prong focuses on the branch level, and includes training employees and providing relevant print materials. As the baby boomers age, the problem of financial elder abuse is not going to go away.
 Study: The True Link Report on Elder Financial Abuse 2015 Executive Summary. (January, 2015). Retrieved January 20, 2017, from https://www.truelinkfinancial.com/news/true-link-releases-latest-elder-financial-abuse-findings-losses-discovered-to-be-much-worse-than-originally-thought