Recognizing Elder Financial Exploitation Protective Practices for Financial Institutions By Mark W. Dever, AAP, CAMS, ProBank Education Services Director, Forvis Mazars The National Adult Protective Services Association defines elder financial exploitation (EFE) as the “illegal or improper use of an older person’s or vulnerable adult’s funds, property or assets.”1 EFE is one type of elder abuse, which includes physical, sexual, emotional or psychological, and financial abuse or exploitation, neglect, abandonment and/or self-neglect.2 This article will explore EFE schemes and actions for financial institutions to consider. EFE Schemes to Watch For EFE includes the use of deception, intimidation or undue influence by a person or entity in a position of trust and confidence with an elderly person to obtain or use the property, income, resources or trust funds of the elderly person for the benefit of a person or entity other than the elderly person; the breach of a fiduciary duty, including, but not limited to, the misuse of a power of attorney, trust or a guardianship appointment, that results in the unauthorized appropriation, sale or transfer of the property, income, resources or trust funds of the elderly person for the benefit of a person or entity other that the elderly person; and obtaining or using an elderly person’s property, income, resources or trust funds without lawful authority, by a person or entity who knows or clearly should know that the elderly person lacks the capacity to consent to the release of use of their property, income, resources or trust funds.1 EFE schemes generally involve either elder theft (schemes involving the theft of an older adult’s assets, funds or income by a trusted person; in many instances, an adult child or a close friend) or elder scams (scams involving the transfer of money to a stranger or imposter for a promised benefit or good that the older adult did not receive).3 Older Adults Are Losing More Money to Scams The U.S. Census Bureau currently estimates the total U.S. population at approximately 342.6 million persons (approximately 4.2% of the estimated world population).4 The National Council on Aging estimates that between 18-19% of the population is age 60 and over, and that group controls an 5 Colorado Banker
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