Pub. 7 2017-2018 Issue 6

6 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S A Word From CBA... T his month marks national Older Americans month, and banks are a front line of detection and prevention of financial abuse of the elderly. Financial abuse against older Americans can take many forms that range fromscams to illegal account debits to evenun- authorized bank withdrawals by a caregiver or familymember. According to the AARP, older Americans are responsible for .67 cents of every dollar deposited in U.S. retail banks and credit unions. Simultaneously, they are at the greatest risk of fraud and financial abuse. By 2025, one in every five Ameri - cans will be over the age of 65. When one factors in that the average victim of financial fraud loses $120,000, the impact could be astronomical. And, financial institutions lose $1 billion per year due to financial fraud. Much of that could be prevented with keen detection and prevention. (Hopefully) you read in our last edition of Colorado Banker about AARP Banksafe (if not, visit www.aarp.org/banksafe) . Colorado is one of 12 states chosen to get early access to a new financial exploitation training designed specifically for front - line staff. As part of its national training program featuring content developed and reviewed bymore than 200 bank, credit union, legal and law enforcement experts, AARP is piloting the BankSafe training program this month as it prepares for a national launch by the end of the year. In addition to that, a number of other resources exist, includ- ing theAmericanBankersAssociation’s SafeBanking for Seniors Initiative, and here in Colorado the Attorney General’s Office’s ElderWatchprogram, a partnershipwith theAARPFoundation. I encourage you to take some time andperuse these resources to educate yourself and your fellow bankers on how to protect older Americans, your MVCs (most valuable customers.) Please keep handy these 14 red flags for financial abuse of the elderly: 1. Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals 2. Changing from a basic account to one that offers more complicated services the customer does not fully un- derstand or need 3. Withdrawals frombank accounts or transfers between accounts the customer cannot explain 4. A new “best friend” accompanying an older person to the bank 5. Sudden non-sufficient fund activity or unpaid bills 6. Closing CDs or accounts without regard to penalties 7. Uncharacteristic attempts to wire large sums of money 8. Suspicious signatures on checks, or outright forgery 9. Confusion, fear or lack of awareness on the part of an older customer 10. Checks written as “loans” or “gifts” 11. Bankstatements that no longer go to the customer’shome 12. New powers of attorney the older person does not understand 13. A caretaker, relative or friend who suddenly begins conducting financial transactions on behalf of an older person without proper documentation 14. Altered wills and trusts n Don Childears President and CEO Colorado Bankers Association