On June 15, FinCEN issued an Advisory on Elder Financial Exploitation (“Advisory”) to warn financial institutions about the rising trend of elder financial exploitation (“EFE”), which FinCEN defines as “the illegal or improper use of an older adult’s funds, property, or assets, and is often perpetrated either through theft or scams.” The Advisory is detailed. It highlights new EFE typologies and potential red flags and builds upon a related advisory issued in 2011. It also offers tips on Suspicious Activity Report (“SAR”) filings and describes other resources available to fight EFE.
Background
According to the Advisory, older adults – defined by FinCEN as anyone 60 years or older – are targets for financial exploitation due to their income and accumulated life-long savings, in addition to the possibility that they may face declining cognitive or physical abilities, isolation from family and friends, lack of familiarity or comfort with technology, and reliance on others. All of these risks have been exacerbated by the COVID-19 pandemic. The Advisory states that although EFE is the most common form of elder abuse, the majority of incidents go unidentified and unreported because victims may choose not to come forward out of fear, embarrassment, or lack of resources.
The Advisory provides some statistics on the pervasiveness of EFE and notes that financial institutions filed 72,000 SARs related to EFE in 2021 – an increase of 10,000…
