The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently released a Financial Trend Analysis focusing on patterns and trends related to Elder Financial Exploitation (EFE). According to FinCEN's analysis, there were 155,415 filings over a one-year period totaling approximately $27 billion in EFE-related suspicious activity.
"FinCEN has long recognized the threat that Elder Financial Exploitation poses and the need to protect the older adult population from financial abuse," stated FinCEN Director Andrea Gacki. She also expressed gratitude towards financial institutions for their vigilance in identifying, preventing, and reporting suspected cases of EFE.
The analysis highlighted that financial institutions have been instrumental in reporting EFE incidents, with banks being the primary filers of EFE-related reports. The data revealed that EFE typically involves two subcategories: elder scams and elder theft, with elder scams being more prevalent, accounting for approximately 80% of the analyzed reports.
The report also pointed out that most elder scam-related filings referenced "account takeover" by unknown perpetrators, while elder theft incidents often involved adult children as the perpetrators. It was noted that illicit actors predominantly used unsophisticated methods to steal funds, aiming to minimize direct contact with financial institution employees.
EFE-related losses can have a significant impact on victims' financial well-being, affecting personal savings, checking accounts, retirement savings, and investments. In response to EFE incidents, FinCEN recommends that financial institutions refer potential victims to relevant government agencies for assistance in reporting suspected fraud.
To combat EFE and protect older adults from financial exploitation, FinCEN advises victims to file incident reports with the FBI's Internet Crime Complaint Center and the Federal Trade Commission. Additionally, educational resources on EFE and scams targeting older adults are available through the Consumer Financial Protection Bureau’s Office for Older Americans and the Department of Justice.
The Department of Justice's National Elder Fraud Hotline can also be contacted at 833-FRAUD-11 or 833-372-8311 for further assistance. These initiatives aim to raise awareness and provide support in combating Elder Financial Exploitation, ensuring the financial security and well-being of older adults.
