Baltimore-area banks could do more to help prevent financial fraud targeting older adults, according to a report to be released Tuesday by the Maryland Consumer Rights Coalition.
The consumer advocacy group graded 10 of the region's largest banks on their accessibility and the types of products they tailor to seniors. It only included the top 10 banks by market share in Baltimore and Baltimore County.
Among those banks, M&T Bank had the highest overall grade — a B — while BB&T had the lowest overall grade — a C.
Despite a 2012 state law requiring that banks report suspected fraud targeting seniors to state regulators, only four of the 10 banks responded to the survey question about their fraud prevention programs. Those four reported they had at least annual training for employees in detecting fraud.
Older Americans lose $2.9 billion a year to fraud, according to a 2011 study by the MetLife Mature Market Institute in collaboration with the National Committee for the Prevention of Elder Abuse and the Center for Gerontology at Virginia Tech. Another report, by financial firm True Link this year, pegged that number much higher, at $36.48 billion.
"The laws require them to play some role" in detecting fraud, said Marceline White, executive director of the Maryland Consumer Rights Coalition. "They're supposed to be trained to stop that kind of fraud, but I think it helps to talk to bank tellers about how they see their role."
White said she was heartened by the banks that did respond, but "I think if banks aren't responding to requests when they know its going to be in the report, that certainly gives you pause."
The report's authors examined whether banks had weekend hours, as many seniors said they were uncomfortable driving to a bank after dark. It also examined whether banks had low- or no-fee checking and savings accounts, the number of ATMs near senior centers and whether they offered telephone support.
Representatives for PNC, First National Bank, Bank of America, SunTrust and PNC declined to comment on the report. Spokespeople for BB&T, Susquehanna Bank, and First Mariner said the banks had products tailored to seniors, like low-fee checking accounts, and had programs in place to help tellers spot fraud.
"BB&T has grown substantially in the Baltimore market and is working hard to expand its presence in elderly and low- to moderate-income areas with the planned opening of three new branches this year," BB&T spokesman David R. White said in an email. "In addition to offering a senior checking account, BB&T makes every effort to provide the most comprehensive and competitive financial products to all its clients, including senior citizens."
Kathleen Murphy, the president and CEO of the Maryland Bankers Association, said that because it is now mandatory under federal and state law to report suspected financial fraud, "this report I don't believe captures everything that banks are doing in that regard."
For example, she said her group offers an online training program that banks use to coach employees on how to spot potential fraud.
Murphy also said the report did not reflect that "there is tremendous choice for seniors" in Baltimore, where there are 35 banks with branches in the city.
"I would put the banking industry against any other industry in terms of fraud prevention," Murphy said. "If there is an incidence of fraud, then the customer is made whole. If they're not satisfied with that bank, there are a lot of choices for them."
Noel Carroll, who heads retail banking for M&T in the Greater Baltimore market, said the bank trains staff on how to detect fraud and sends them monthly reminders.
"It's important for all banks because none of us want to see old people taken advantage of," he said. "We all think of our own parents."
The Consumer Rights Coalition's report was based on a survey of 250 people at least 55 years old, and on information provided by the banks or available on their websites.
Arnold Eppel, deputy commissioner of the Baltimore City Health Department's Division of Aging and Care Services, said the role of tellers can be critical in helping older people avoid becoming victims of fraud.
"A lot of tellers may be in their 20s or 30s and have rose-colored glasses about financial abuse," he said. "A lot of financial abuse occurs in many different ways, and they can be a front line on that."
Maryland Attorney General Brian E. Frosh praised the report.
"A few simple steps — like assisting with online banking and providing specially tailored loans to help seniors stay in their homes — can go a long way toward reducing fraud and building stronger communities," he said in a statement.
Alan Brody, a spokesman for the attorney general's office, said the agency doesn't track the age of those complaining they've been targeted in financial scams. But he added that, at least according to anecdotal evidence, the elderly are often targeted.
"Number one, because they're on a limited or fixed income, they tend to be more susceptible," Brody said. "They're worried about their finances."
Brody said the "classic" grandparent scam, in which someone will call in the middle of the night claiming to be a grandchild in distress and in need of money, preys upon elderly peoples' concern for their loved ones.
White said one of the report's most important findings was the importance of brick-and-mortar branches to older adults.
"When branches close, the human contact is irreplaceable," White said. "Some older adults are certainly not going to be going online and having that be an adequate substitution."
Bank grades for service to seniors
M&T Bank: B
PNC Bank: B-
Rosedale Federal Savings & Loan: B-
SunTrust Bank: B-
Bank of America: B-
Wells Fargo Bank: B-
1st Mariner Bank: B-
Susquehanna Bank: C+
First National Bank: C+
BB&T: C
Source: Maryland Consumer Rights Coalition