Back in June 2022, FinCEN issued an Advisory (FIN-2022-A002) related to Elder Financial Exploitation. The purpose of the Advisory was to alert institutions to the rising trend of elder financial exploitation (EFE). EFE involves the illegal or improper use of an older adult’s funds, property, or assets, and is often perpetrated either through theft or scams.
EFE usually involves either theft or a scam(s). Theft is usually committed by someone known and/or trusted by the victim, while scams are usually carried out by someone without a relationship to the victim. Perpetrators usually victimize someone more than once and may sell their victims’ information to other criminals.
The different types of scams specifically mentioned in FinCEN’s Advisory included:
- Government imposter scams
- Romance scams
- Emergency/person-in-need scams (“grandparent scams”)
- Lottery and sweepstakes scams
- Tech and customer support scams
Unfortunately, perpetrators of these crimes are constantly looking for new ways to lie, cheat and steal from older adults which means that banks must always be on their toes and aware of the potential red flags of EFE. The Advisory provides both “Behavioral” and “Financial” Red Flags to help institutions detect, prevent and report potential EFE.
Published
2023/08/28
