The Financial Services Industry
Our business of financial services has an important role to play, too. Financial professionals can be trained to watch for potential signs of abuse, and on how to report issues. Several states have introduced safe harbor provisions to permit financial service workers to report suspected abuse without breaching privacy rules. In some states, protections have also been proposed to allow for transactions to be suspended while the potential abuse is assessed.
For these provisions to work, financial service workers must know how to identify potential cases of EFA. One step we’ve taken is to implement EFA training for all employees, regardless of their role. To thoroughly assess individual situations, we have a team of trained investigators. And we’re modifying our account applications to permit a client to identify a trusted third party whom we can contact should we have concerns about the client or the account.
What To Watch For
There is no definitive list of EFA issues, because the abuse is varied and ever-changing. But watching for red flags is a start. Has there been a change in the elder’s personality, social engagement or financial management capabilities? Have bills gone unpaid, or have purchase patterns changed? Have there been unusual or inexplicable transactions, such as a series of withdrawals or an address change? Have changes been made to legal documents such as wills or trusts? Has someone newly assumed a position of strong influence on the elder, whether a family member, neighbor or friend, and are gifts or loans involved?
Elder financial abuse will continue to be a growing problem as baby boomers age and seniors represent a larger percentage of the population. Raising awareness and removing the stigma on family financial conversations are critical first steps. We all have an obligation and opportunity to help protect the savings of millions of Americans so that their hard-earned retirement years can truly be golden.
Walter White is the president and chief executive officer for Allianz Life Insurance Company of North America.