Sandra L. Hughes, J.D., of the American Bar Association, Commission on Law and Aging, identified some scenarios where bank tellers could detect possible financial exploitation of the elderly. In some cases, it is obvious that an older adult is being taken advantage of by a caretaker or someone he or she trusts. In one of the cases featured in the 2003 article “Can Bank Tellers Tell? –Legal Issues Relating To Banks Reporting Financial Abuse of The Elderly” discussed an 86 year old, Florence Harter, who was being blackmailed by an employee of the hospital that she had been admitted to. The blackmailer went to the bank and tried to withdraw $10,000 from her bank account, yet the bank teller was suspicious of the transaction. The activity was reported to the police and the perpetrator was caught.
In this case, Florence Harter got lucky that a bank teller was concerned about her bank activity and decided to become involved. Yet, in other cases, bank tellers don't want to get involved in the personal affairs of their banking clients for fear of possibly offending their clients. Hence, many bank tellers may not do anything to help prevent the possible financial exploitation or theft of money from the elderly.
With the population of older adults (especially those over the age of 85) increasing significantly, banks should be obligated to report possible financial abuse or any activity that appears remotely suspicious. Banks should also be protected from liability if they do report potential financial abuse. If the state and federal laws do not provide immunity to banks and financial institutions for reporting financial abuse, bank personnel will be less inclined to become involved for fear of being reprimanded or getting in trouble for violating the bank customer’s right to privacy. According to Hughes, “Of the states with mandatory reporting laws, only three states, Florida, Georgia and Mississippi, identify banks as mandatory reporters” of such financial abuse. Hughes states that “in most states that have tried to make banks mandatory reporters [of elder financial abuse], the banking industry has opposed such efforts” because they are scared of the liability if they do or do not report the abuse. But I believe that the risk is small and the benefit of requiring disclosure is great. Most elderly individuals are probably not using online banking since many are not comfortable with the computer. Since most of their banking is being done in person with a bank teller or employee, there are many opportunities for bank employees to detect possible financial abuse or exploitation. For instance, large amounts of money suddenly being withdrawn for no apparent purpose should raise red flags. Bank employees should immediately investigate this activity to determine if the client is aware of these withdrawals and whether the withdrawals are being made for the benefit of the client.
I do understand that obviously there is a risk of error. A bank employee may be mistaken as to certain withdrawals of money- there may be a legitimate reason for these large withdrawals. Regardless, it is better that the employee make sure that there is no fraud or abuse. Even if errors are made, most customers will probably appreciate the extra protection that is being offered to them by a concerned employee asking about a suspicious situation.
I think legislation that requires the reporting of any suspicious activity detected by bank employees involving possible financial abuse of elders should be passed. The requirement should make it mandatory that any employee who is suspicious of possible financial abuse must report the activity to the proper authorities. This would do wonders.
http://www.ncea.aoa.gov/ncearoot/main_site/pdf/publication/bank_reporting_long_final_52703.pdf
