Safeguarding your loved ones from Elder Financial Exploitation

Elder Financial Exploitation (EFE) involves the misappropriation of seniors’ money, property or financial resources for someone else’s gain.

Financial exploitation refers to two types of financial crimes committed against older adults:

• Financial abuse (committed by someone you know) and financial fraud (committed by a stranger), both of which result in serious financial, physical and emotional harm to older adults.¹
• People who commit these financial crimes may use charm, persuasion, lies, threats and a variety of other approaches. Their goal is to separate older adults from their money.²

EFE can include theft, misuse of credit or debit cards, misuse of bank accounts, fraud, forgery and scams. It is important to be aware of the signs of financial abuse and take steps to protect Texas Capital clients as well as the older adults in your life. Red flag indicators that aid in the detection and prevention of EFE include:³

• Withdrawals on dormant accounts with large balances
• Purchases a large number of gift cards 
• Suddenly discusses investments
• Transactions with descriptors such as “winnings” 
• Uncharacteristic transfers of assets, such as transfers to purchase cryptocurrencies, bitcoin or other investment commodities
• Transfers with individuals whom they do not have a relationship
• Frequent, large ATM withdrawals
• Sudden/frequent non-sufficient fund activity
• Unpaid bills
• Attempts to wire large sums of money
• Closing CDs/accounts without regard to the penalties
• New joint owner added to the accounts 

Understanding the Threat

EFE is widespread and often goes unreported. Perpetrators can be individuals known to the victim, such as family members, caregivers and friends. However, the perpetrators can also be strangers posing as telemarketers or cybersecurity companies who target these older adults through online scams. The exploitation can happen in various forms, including:

• Abusing power of attorney or guardianship privileges.
• Scams and fraudulent schemes: 
  • Telemarketing scams: These scams involve unsolicited calls offering fake prizes, investment opportunities or claiming the senior owes money to the IRS.
  • Romance Scams: Perpetrators build online relationships with seniors, gaining their trust and exploiting them for money.
  • Grandparent Scams: Imposters posing as grandchildren call seniors claiming to be in trouble and needing immediate financial assistance.
• Undue influence or pressure to make financial decisions and/or changing wills or beneficiaries.
• Isolating seniors from family and friends to gain control over their finances.  
   

Protecting Our Elders

• For Families and Caregivers:
  • Educate yourself and your loved ones. Learn about common EFE scams, warning signs and protective measures.
  • Open communication. Talking openly about finances with your older family members will not only foster trust, it will also create an environment where they feel comfortable sharing their concerns.
  • Review financial statements. Review financial statements and credit reports with your family members for suspicious activity.
  • Seek professional help. Consider consulting financial advisors or elder law attorneys for guidance.
  • Report suspected fraud. If you believe someone is being targeted, report it immediately to Adult Protective Services or local law enforcement agencies.

By raising awareness and taking preventive measures, we can create a safer environment for our seniors, ensuring they are empowered and protected from financial exploitation.  

For additional fraud prevention resources, please visit our E-Fraud Prevention at https://efraudprevention.net/us/texascapitalbank/portal.html.

If you think you may be a victim of a scam, report it to Adult Protective Services, your financial institution and your local police.

Additional Resources:  

• National Adult Protective Services Association (NAPSA): https://www.napsa-now.org
• Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov 
• US Department of Justice: https://www.justice.gov 
• Texas Department of Family and Protective Services: Adult Protective Services: https://www.dfps.texas.gov/adult_protection
   

¹ U.S. Department of Justice, Financial Exploitation, https://www.justice.gov/elderjustice/financial-exploitation

² FinCEN, FinCen Issues Advisory on Elder Financial Exploitation, 2022, FinCEN Issues Advisory on Elder Financial Exploitation | FinCEN.gov.

³ Verafin, Elder Financial Exploitation Rampant & Rising, https://verafin.com/resource/elder-financial-exploitation/.