So it makes sense that these institutions take part in an effort to protect older Marylanders from being ripped off. Thanks to a new state law, they will.
Financial institutions usually aren't keen on more regulation. But many are on board in this case, saying the mandate will raise awareness of a serious problem.
"The more people are aware that this is an issue, the better it is for most people," says Bob DeAlmeida, president of Hamilton Bank in Towson.
He adds, "I have a father who is 85 and, quite frankly, he has been taken before on some issues and it scares me all the time."
Some of the statistics about elder financial abuse are scary. Many other states already have such a reporting mandate, and it's about time Maryland joined them.
It's difficult to know precisely how widespread elder financial abuse is in Maryland because not all victims report the abuse — especially if the perpetrator is a family member or caregiver. Adult Protective Services in Maryland last year investigated 982 cases of financial exploitation, which accounted for about 15 percent of its investigations.
Elder financial exploitation is a national problem — and an expensive one.
The Investor Protection Trust found in a 2010 survey that one in every five Americans over the age of 65 had been financially swindled. A MetLife Mature Market Institute study last year found than older Americans lost $2.9 billion to elder financial abuse, a 12 percent increase in three years.
And the problem is still growing.
"Big time," says Don Blandin, president of the Investor Protection Trust. "Not only as the population ages, but as we also shift the responsibility of one's financial future to individuals."
Seniors are targeted because they are where the money is.
"Seventy percent of the wealth in this nation is in the hands of people 50 years of age and older," says Del. Benjamin Kramer, a Montgomery County Democrat who sponsored the legislation. "That's not lost on the con artists and scammers."
Often older adults are more vulnerable to this type of fraud because they are isolated, with no one looking out for them, or in poor health and less likely to scrutinize financial transactions as they once did.
The MetLife study found that strangers perpetrated slightly more than half of the reported cases of elder financial abuse, while family, friends and neighbors were the culprits about one-third of the time. But banking officials and aging experts in Maryland say perpetrators tend to be relatives and caregivers.
"The classic scenario is a woman in her 80s who has a son still living at home who has some kind of alcohol or drug dependency problem," says Jeffrey Myers, an assistant attorney general with the Maryland Department of Aging.
Maryland passed a law more than a decade ago that allowed financial institutions to voluntarily report elder financial abuse without running afoul of bank privacy laws. Making the reporting mandatory will prompt institutions to pay closer attention to the problem, Myers says.
Around 20 states require the reporting of such cases, including California since 2007. By the end of 2010, California banks reported that more than 26,000 cases of potential elder abuse had been turned over to authorities, Kramer says.