The Financial Crimes Enforcement Network ( FinCEN ) has released several publications asking financial institutions ( FIs ) to be on the lookout for elder financial abuse and to report this abuse when it is identified . While focusing on the elderly , it is a critical function to protect a vulnerable population and this includes legal reporting obligations , where the concept of monitoring for financial abuse can and should be expanded beyond the elderly .
What is financial abuse ?
Financial abuse , also referred to as economic abuse , is defined by the U . S . Department of Justice ( DOJ ) as follows :
“ Controlling or restraining a person ’ s ability to acquire , use , or maintain economic resources to which they are entitled . This includes using coercion , fraud , or manipulation to restrict a person ’ s access to money , assets , credit , or financial information ; unfairly using a person ’ s personal economic resources , including money , assets and credit , or exerting undue influence over a person ’ s financial and economic behavior or decisions , including forcing default on joint or other financial obligations , exploiting powers of attorney , guardianship , or conservatorship , or failing or neglecting to act in the best interests of a person to whom one has a fiduciary duty .” 1
Financial abuse can affect anyone at any time . Three types of financial abuse include :
▪ Elder financial abuse
▪ Domestic financial abuse
▪ Childhood financial abuse
Elder financial abuse
The Consumer Financial Protection Bureau ( CFPB ) reported in September 2022 that a large number of older adults lose money due to elder financial abuse and these victims rarely recover . 2 The DOJ reported that the National Adult Mistreatment Reporting System documented 46,279 victims of adult mistreatment over the age of 60 across 36 states in 2021 , with 19,087 or 41 % of victims suffering exploitation . 3 In most cases , the relationship to the perpetrator was a family member . The Internet Crime Complaint
ACAMS Today | December 2023 – February 2024 29