A recent case of elder financial exploitation has highlighted the need for banks and families to be vigilant in protecting the assets of older adults. Phyllis Hood, a 101-year-old woman from Beaver County, Pennsylvania, had her life savings of over $230,000 stolen by her caregiver, Anna Kugel.

Elder Financial Exploitation on the Rise

As Americans live longer and accumulate more wealth, financial exploitation has become one of the fastest growing threats facing older adults. The American Bankers Association has stated that banks are on the front lines of this challenge, making significant investments in employee training, account monitoring, and safeguards to detect suspicious activity and protect vulnerable customers.

Banks look for subtle warning signs that something isn’t right, such as large cash withdrawals. Erik Fuhr, a branch manager at Dollar Bank in Cranberry, Pennsylvania, said that tellers and branch managers will often ask casual questions to better understand the purpose of the withdrawal. In one case, an elderly customer came into a branch wanting to withdraw $8,000, which was most of the money in the account. The customer’s body language appeared uneasy, and the explanations for needing the money changed during conversations with bank employees.

Proposed Legislation to Prevent Financial Exploitation

The financial services industry is backing legislation aimed at protecting elderly and vulnerable people from being exploited. The proposed Financial Exploitation Prevention Act would allow registered investment companies to delay the disbursement of money from the sale of shares if financial exploitation is expected. The delay would give firms time to contact the account owner or a trusted contact person to verify that the transaction is legitimate.

Original reporting: Texarkana Gazette — read the source article.