Elder and Dependent Adult Financial Abuse

San Bernardino CountyDepartment of Aging and Adult

ServicesMarch 2010

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Overview

Senate Bill 1018: Financial Elder Abuse Reporting Act of 2005.

Who is an Elder or Dependent Adult?

What is Financial Abuse? The role of financial institutions. Who are possible abusers?

Overview, continued What are the signs of financial

abuse? How to spot risk factors for potential

financial abuse. How to report financial abuse in San

Bernardino County. The role of Adult Protective

Services (APS). Other resources.

Senate Bill 1018: Financial Elder Abuse Reporting Act of 2005

Requirements of the Law: A telephone report must be made to APS or

law enforcement when an employee suspects financial abuse.

The telephone report must be followed up with a written report within two working days.

Financial institutions must: Develop internal reporting structures, Develop effective policies and procedures, and Work with APS and other enforcement agencies.

Who is considered an Elder or a Dependent Adult?

An Elder is a person over the age of 65.

A Dependent Adult is a person between the ages of 18 and 64 with a physical or mental disability that makes it difficult to carry out normal activities or to protect his or her rights.

What is financial abuse? Financial abuse is generally defined as the

improper use of an elder’s or dependent adult’s funds, property or assets.

SB 1018 states that “suspected financial abuse” occurs when a bank employee observes behavior or transactions that would lead a person with similar training to form a reasonable belief that an elder or dependent adult is the victim of financial abuse.

Extent of the Problem The extent that economic crimes affect

the elder and dependent adult communities as well as the actual monetary impact involved are widely unknown due to: Lack of reporting (embarrassment or shame), Family dynamics, Lack of action taken (Civil vs. Criminal), or Death.

Extent of the Problem, continued

Elder and dependent adult financial abuse is one of the most under-recognized and under-reported crimes.

Elder abuse reports are up more that 150% in the last 10 years!

Nationally, only 1 in 14 cases are reported. In the State of California, only 1 in 5 cases

are reported.**Attorney General’s Office statistics from 2003.

The Role of Financial Institutions

Identify those at risk, Implement policies and procedures to

protect your customer, Protect your customer from fraud and

take necessary action, Respond to all concerns and suspicions

regarding financial abuse, and Report all suspected instances of

financial abuse.

Possible Abusers Caretakers, Elder service providers, Professionals who deal with elders or

dependent adults, Family members, Neighbors,

Possible Abusers, continued

“New” friends, Telemarketers, Organized transient crime families

(“Travelers”), Con artists, or Anyone!

Signs of Financial Abuse

Undue influence, Suspicious behavior by the abuser

and/or victim, Suspicious financial activity, and/or Financial exploitation.

Undue Influence

Coercion, Extortion, Endearment, Isolation, Fear, Trust,

Promises, Persuasion, Force, Intimidation, Abandonment, and/or Ending care

relationship.

Undue influence means the use of:

Suspicious Behavior by Abuser Hostility to visitors, Dominance over or speaking for

elder/dependent adult, Isolation of elder/dependent adult, No visible means of support,

and/or Exaggerated concern or

defensiveness for elder/dependent adult.

Suspicious Behavior by Elder or Dependent Adult

Isolation, Confusion or implausible

explanations, Hesitation to speak freely, Embarrassment or shame, Denial of abuse, and/or Changes in behavior.

Suspicious Financial Activity

Unusual volume or activity: Change in patterns of withdrawals/deposits, and/or Frequency of withdrawals.

Changes in account status: Change of owners or account relationships, Change of address, Suspicious or irregular signatures on checks or

documents, Other person(s) handling financial affairs,

Suspicious Financial Activity, continued

Changes in account status (continued): Sudden changes in incurred debt or

credit standing, Early surrender or penalties on term

accounts or investments, and/or New requests to transfer assets to

different financial institutions, brokers or wire transfers.

Suspicious Financial Activity, continued

Inconsistent activity: Increase in transactions, checks

written and/or inquiries made, Activity at different branch locations, Withdrawal(s) from previously

inactive accounts, Non-sufficient funds and/or overdraft

notices,

Suspicious Financial Activity, continued

Inconsistent activity (continued): Multiple checks payable to same

person and/or entity, New requests for automated services,

such as: ATM cards, Internet access, Telephone access.

Suspicious Financial Activity, continued

Inconsistent activity (continued): Requests for new lines of credit

and/or increases to existing lines of credit,

New vehicle purchases (inconsistent to lifestyle), and/or

Mortgage refinances and/or home equity loans.

Financial Exploitation Victim Characteristics

Victim may be accompanied by a: Stranger who encourages frequent or

large cash withdrawals, Family member or other person who

coerces them to make transactions, and/or

People who appear “too” interested in their finances.

Financial Exploitation Victim Characteristics,

continuedVictim may also: Appear nervous or afraid of the person

accompanying them, Not be allowed to speak for themselves or

make decisions, Be concerned or confused about “missing”

funds, Be unable to remember financial transactions, Be fearful of eviction or abandonment by

caregiver Be isolated from family, friends, or other

support groups.

Identifying Those at Risk

Are widowed, Never married, Require caregiver or in-home worker, Have physical limitations, Are extremely trusting and open with others, Are easily intimidated, influenced, or

persuaded, Have limited contact with:

Family, Friends, and/or Church members

Rarely go outside the home.

Some risk factors for financial abuse are persons who:

Look for these signs Victim communication and behavior:

Confusion (particularly when it’s about something the person should know),

Disorientation, Forgetfulness (or attempt to cover-up memory loss),

and/or Slurred or rambling speech, difficulty understanding

speech, or mumbling, Abrupt changes in communication style or personality.

Victim has difficulty with: Activities of daily living, Understanding written directions or documents, and/or Solving simple problems.

Victim’s Personal Appearance

Look for changes and/or extremes: Unkempt appearance, Emaciated or bloated appearance, Dirty or inappropriate clothing, Unshaven face, Uncombed hair, and/or Unusual or extreme body odors.

The Written Report (SOC 342) A written report is completed on the SOC

342 - Report of Suspected Dependent Adult/Elder Financial Abuse form.

This report must contain : Customer’s name, Customer’s address, Customer’s phone number, and A brief scenario of the observations or

transactions that raised suspicions.

Where to Locate the SOC 342

The SOC 342 may be: Completed online at the following website:http://www.dss.cahwnet.gov/cdssweb/entres/forms/English/soc342.pdf

OR Downloaded and copied from Bewiseonline.org

Important Note: The report must be called in and sent to Adult Protective Services, as instructed on the following slide.

How to File a Report in San Bernardino County

Report suspected financial abuse of elders or dependent adults by telephone immediately, or as soon as possible, to the : County of San Bernardino 24-Hour

Toll-Free Child and Adult Abuse Hotline (CAAHL) at (877) 565-2020, or

Local law enforcement agency.

How to File a Report in San Bernardino County,

continued

Send a completed copy of the SOC 342 report within two working days of the phone call: Via mail to:

CAAHL at 412 West Hospitality Lane, San Bernardino, CA 92415-0029, or

Via fax to: CAAHL at (909) 388-6718.

Consequences for Failing to File a Report

Employees of financial institutions who fail to file a report when it can be proven that the employee should have suspected financial abuse will incur a:

Fine of $1000-$5000 against the institution, and/or

Possible misdemeanor charge punishable with jail time.

Employees of financial institutions are not subject to individual fines for failure to report.

The Role of Adult Protective Services

Adult Protective Services (APS): Is an agency that is state-mandated to receive

and investigate reports of elder and dependent adult abuse and neglect,

Connects elders and dependent adults with services, and

Provides crisis intervention: assessing danger and developing service plans to reduce danger.

Note: Investigations are mandatory, while services are voluntary.

Other Resources Elder Financial Protection Network:

www.bewiseonline.org

National Center on Elder Abuse: www.ncea.aoa.gov

California Attorney General’s Office (Elder Abuse): http://ag.ca.gov/bmfea/elder.php

San Bernardino County Resources

For questions in San Bernardino contact:

Department of Aging and Adult Services

686 E. Mill StSan Bernardino, CA 92415

(909) 891-9048(760) 843-5160