Elderly Financial Exploitation Soaring: CFPB

Financial exploitation of the elderly is soaring in the United States, the CFPB said in a report issued this week.

The number of Suspicious Activity Reports dealing with financial exploitation of the elderly that financial institutions filed with regulators grew from about 1,300 filed per month in 2013 to about 5,300 each month in 2017.

And those figures don’t account for those that aren’t reported, the CFPB said.

“If the financial institution is not reporting to adult protective services, law enforcement or other authorities, this is a missed opportunity to strengthen prevention and response,” the agency said. “More reporting to the relevant law enforcement agencies can increase investigation and prosecution.”

In 2017, money services business filings reached 58% of all elderly financial abuse SARs, compared with 15% in 2013.

And the average loss per person was much larger when the older adult knew the suspect. The average loss for older adults who knew the suspect was $58,000, compared with $17,000 when the suspect was a stranger.

While financial institutions are filing an increasing number of SARs dealing with elderly financial abuse, those reports did not indicate that they are filing reports with law enforcement or adult protective services.

Fewer than one-third of the filers stated the activity was reported to those officials, the CFPB said.

“This is a missed opportunity to increase investigation and prosecution, and to make it more likely that victims will receive appropriate services,” the CFPB said.