Pub. 12 2017-2018 Issue 3

NEBRASKA BANKERS ASSOCIATION 13 Counselor’s Corner — continued on page 14 Increasingly, lawmakers and regulators are working dili- gently to protect our seniors from financial exploitation. While some have placed burdens on banks to prevent, ferret out, and report financial exploitation subject to penalty, most have encouraged banks to be on the watch for potential exploita- tion and to partner with regulators and law enforcement to address these concerns voluntarily. These broader efforts have included providing education regarding the financial exploita- tion of elders, procedures and protocols for preventing and recognizing financial exploitation, and guidance for reporting suspected financial exploitation. Historically, bankers have been restrained in reporting financial elder abuse by privacy laws and the fear of retribu- tion for the disclosure of protected personal information. The clear trend nationally and in Nebraska, however, is to provide assurance to bankers that they may take reasonable steps to notify proper authorities if they suspect elder financial abuse. The Nebraska Department of Banking and Finance (NDBF), for example, has been proactive in addressing the is- sue of elder financial abuse and stands ready to assist financial institutions in addressing the issue. When asked to comment on the subject for this article, NDBF Director Mark Quandahl promptly responded, stating: “The Department welcomes your contact. The Department will assist any financial institution in addressing financial abuse matters regarding elder Nebraskans. There is much that can be done. It is important to properly report financial abuse, to educate one another on the signs of abuse, to take steps to forestall financial abuse, and to pay attention to what our elder neighbors are doing. Our senior population is growing . . . now is the time to carefully review our strategies to help them.” 9 Volumes have been written on elder financial exploitation, but perhaps the most comprehensive and helpful writings aimed at assisting financial institutions in protecting elder customers are by the Consumer Financial Protection Bureau (CFPB) and the Nebraska Bankers Association (NBA). In March 2016, the CFPB issued an Advisory for Financial Institutions on Preventing and Responding to Elder Financial Exploitation 10 and an accompanying Recommendations and Report for Financial Institutions on Preventing and Respond- ing to Elder Financial Exploitation. 11 In releasing the advisory, CFPB Director Richard Cordray noted, “[b]anks and credit unions are uniquely positioned to look out for older Americans and take action to protect them” given bankers often know their older customers, often interact with them face-to-face, and often are in the best position to identify “red flags” indica- tive of potential abuse. 12 Per the advisory and report, the CFPB “provides broad recommendations,” characterized as “best practices,” to help institutions “assess and strengthen their current practices for preventing, detecting, and responding to the financial exploi- tation of older people.” 13 Distilling the report, the CFPB generally recommends institutions: • Develop, implement, and main tain internal protocols and procedures for protecting elder accounthold- ers from financial exploitation, including protocols for training employees to prevent, detect, and respond to potential exploitation; reporting potential exploita- tion to appropriate authorities; and sharing account information with trusted third parties. • Train employees to prevent, detect, and respond to elder financial exploitation by highlighting warning signs of fi- nancial exploitation of, and procedures for investigating and responding to, suspected abuse. The CFPB identi- fied the following three “red flag categories” of conduct, more broadly detailed in Appendix A to the report and recommendation: ◦ Transaction pattern changes, including abrupt in- creases inwithdrawals; newor unusual withdraw- als or spending; and unusual gaps in check numbers; ◦ Identity theft and coercion, including address chang- es followed by account changes; new third-party relatives or “friends” speaking for the older adult; and older consumer lack of awareness of account changes; and ◦ Behavioral changes, including older consumer ap- pearing confused, distressed, unkempt, or Contact us today to learn how an assisted service banking machine may be the answer you are looking for. 800.228.2581 MoneyHandlingMachines.com BRANCH TRANSFORMATION IS... ○ Analyzing your branches ○ Creating the best customer experience ○ Creating a consistent customer experience ○ So much more than just a video teller