This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Senior Abuse Runs Rampant

NEW YORK (MainStreet) ¿ Financial institutions can now sidestep stringent privacy laws in order to report possible financial abuse of older adults. A federal interagency initiative has issued new guidance to financial institutions in order to clarify the privacy provisions of the Gramm-Leach-Bliley Act (GLBA) as it relates to the reporting of suspected financial exploitation of seniors.

The Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau (CFPB) and the Securities and Exchange Commission (SEC), among other federal regulatory agencies, issued the guidance to clarify that "reporting suspected financial abuse of older adults to appropriate local, state, or federal agencies does not, in general, violate the privacy provisions of the GLBA or its implementing regulations."

The agencies said that senior financial abuse includes the "illegal or improper use of an older adult's funds, property, or assets." The notice says exploitation of older adults by family members, caregivers, scam artists, financial advisers, and others, while a growing issue, is rarely reported.

"Older adults are attractive targets because they may have significant assets or equity in their homes," the statement says. "They may be especially vulnerable due to isolation, cognitive decline, physical disability, health problems, and/or the recent loss of a partner, family member, or friend. A financial institution's familiarity with older adults it encounters may enable it to spot irregular transactions, account activity, or behavior. Prompt reporting of suspected financial exploitation to adult protective services, law enforcement, and/or long-term care ombudsmen can trigger appropriate intervention, prevention of financial losses, and other remedies." The GLBA prohibits financial institutions from disclosing nonpublic personal information about a consumer to a nonaffiliated third party without first providing notice. While there have been prior exceptions, the initiative now clarifies that disclosure of personal information to local, state, or federal agencies for the purpose of reporting suspected financial abuse of older adults will fall within one or more of the exceptions.

Must Read: Billions of Dollars Paid for Underperformance

The Department of the Treasury's Financial Crimes Enforcement Network describes potential signs of elder abuse:

  • Erratic or unusual banking transactions, or changes in banking patterns, including frequent large withdrawals, maximum withdrawals from an ATM, sudden non-sufficient fund activity, attempts to wire large sums of money, or the closing of CDs or accounts without regard to penalties.
  • A caregiver or other individual shows excessive interest in the older adult's finances or assets, does not allow the older adult to speak for himself, or is reluctant to leave the older adult's side during conversations.
  • A new caretaker, relative, or friend suddenly begins conducting financial transactions on behalf of the older adult without proper documentation.
  • The older adult moves away from existing relationships and toward new associations with other "friends" or strangers.
  • The older adult's financial management changes suddenly, such as through a change of power of attorney to a different family member or a new individual.
  • The older adult lacks knowledge about his or her financial status, or shows a sudden reluctance to discuss financial matters.

--Written by Hal M. Bundrick for MainStreet

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $211.34 -5.00%
YHOO $36.94 2.60%
AAPL $93.21 -0.44%
FB $117.80 -0.22%
GOOG $701.26 0.80%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs