In a historic collaboration, multiple federal agencies released a comprehensive statement on elder financial exploitation to strengthen protections for vulnerable seniors and curb financial abuse.
As a joint statement by federal agencies on efforts to tackle increasing elder financial exploitation, the need for stronger protections for older Americans is called upon. This joint statement issued earlier this week by a coalition of federal agencies, particularly from the Consumer Financial Protection Bureau, Federal Trade Commission, and Department of Justice, has become a crucial move against the widespread problem of financial abuse targeting seniors.
Elder financial exploitation has seen an explosion in recent years, which spans from strangers to the more closely related family members. Agendas presented alarming statistics from the National Adult Protective Services Association (NAPSA), showing that one of ten older adults will fall into some form of financial exploitation each year. As the trend continues, agencies move in unison to act in the defense of the vulnerable seniors.
“The financial security of older Americans is critical to their well-being, and we must take decisive action to safeguard them from exploitation,” said CFPB Director Rohit Chopra. “This joint statement is a clear signal that federal agencies are committed to working together to strengthen policies, improve victim support systems, and hold perpetrators accountable.”
The agencies identified several key steps in addressing elder financial abuse, including:
Increase cooperation between state, federal, and local agencies in reporting and investigating suspicious activity for timely intervention.
Education to senior citizens and their caregivers regarding scams and methods of exploitation in financial transactions, including fraudulent investments and deceptive telemarketing techniques.
Increase enforcement action on those financial institutions that are reported not to have submitted required reports about suspicious activity associated with the accounts of elders, especially if it presents the possibility of fraud or exploitation.
Better victim support services to ensure that older persons who fall victim to financial exploitation receive the necessary financial recovery and legal assistance.
The statement also emphasized the importance of family members, caregivers, and financial advisors being watchful and reporting any sign of exploitation promptly. Specifically, the agencies recommended using trusted financial guardianships and powers of attorney to help prevent elder abuse within family dynamics.
As part of this continuing effort to curb the disturbing trend, the federal agencies also announced plans for conducting a series of public awareness campaigns educating both seniors and the public at large about dangers posed by financial abuse. With an emphasis on digital literacy and online account protection, the agencies hope to limit seniors’ vulnerability to these scams, especially in a digital world.
The collaborative statement of the agencies is viewed as a critical step towards a more holistic national approach to protecting older Americans from financial harm, and it underscores the urgent need for continued vigilance and action across all sectors of society.
With the population of older adults growing, this unified effort marks a renewed commitment to the financial security and well-being of older adults.
