CFPB Reports Rise in Elder Financial Exploitation, It’s Time to Revisit Those Policies and Procedures

Yesterday, the Consumer Financial Protection Bureau published a report on the issues and trends revealed through Suspicious Activity Reports (SARs) on elder financial exploitation (EFE). In addition to reviewing the data provided through SARs, the Bureau recommends steps that financial services institutions – including both depository institutions and money servicing businesses – can take to protect older consumers.

Rise in SARs Related to EFE

According to the report, EFE is a widespread problem and the most common form of elder abuse. As of April 2013, federal law mandates that financial institutions report suspicious activities through SARs. SAR filings quadrupled from 2013 to 2017. In 2017, financial institutions filed 63,500 SARs related to $1.7 billion in suspicious activity. It is likely that many incidents go unreported, meaning this number represents only a small fraction of actual EFE.