Helping Banks Flags Fraud Against Seniors

The steady increase in financial fraud against seniors in Maine prompted the conception of a state-run pilot program that would train bank employees to identify suspicious activity in return for greater protection from legal liability for reporting it, according to the New York Times . Its success led to the Senior Safe Act, signed into law in May, which gives banks that accept such training more certainty that they would not be penalized for disclosing account information to authorities. "As baby boomers hit their milestones and retire, there's been a growing focus on what we can report," says the American Bankers Association's Robert G. Rowe. "The law gives us safe harbor to report suspicious activity." The Consumer Financial Protection Bureau estimates that one in five older consumers say they have been the victim of some form of financial abuse. Types of fraud targeting seniors range from erasing and substituting different information on a check to check duplication to unauthorized debit charges to submitting fake checks for deposit. As such activity ramps up, banks are expanding their warnings, monitoring, and education efforts. For example, Texas' First Financial Bank certifies "fraud-busting" personnel after they are trained to spot potentially fraudulent actions. Meanwhile, more aggressive consumer education is likely to proliferate under the Senior Safe Act.