ELDER FINANCIAL ABUSE DETECTION PROGRAM

Mr. M, an elderly bank customer, appeared confused about his checking account and why his checks were no longer clearing. After investigating, bank personnel learned that Mr. M’s bank debit card had been used numerous times, but Mr. M denied that he was responsible for the transactions. The bank, which had established a relationship with the local adult protective services agency, filed a report of possible financial abuse. The agency’s investigation revealed that Mr. M had befriended Tim, a young man who had been stealing from Mr. M and using his debit card to finance his drug addiction. In addition, Tim had stolen jewelry from Mr. M’s landlady, who had held Mr. M responsible and evicted him. Adult Protective Services helped Mr. M to find new housing and to open a new bank account that would be monitored for unusual transactions. Although a warrant was issued for Tim’s arrest, he fled the area and escaped prosecution.1

When 86-year old Florence Harter was hospitalized in 1996, she confided to a hospital employee that she was worried that some of her bills might be missed and go unpaid while she was in the hospital. The aide, Maria Galacia, volunteered to help, and Harter gave Galacia the keys to her apartment so she could bring Harter her checkbook. After being discharged from the hospital, Harter discovered that her apartment had been burglarized. Harter confronted Galacia, who threatened to sue Harter for accusing her of taking her jewelry. Galacia then intimidated Harter into making regular cash payments to Galacia in exchange for Galacia’s agreement not to sue Harter. This scheme continued for over a year until one day, Galacia and Harter went together to Harter’s bank and Galacia, who claimed to be Harter’s caretaker, attempted to withdraw $10,000 in cash. This aroused the suspicion of a bank vice president, who questioned Galacia about the transaction. Galacia left the bank without making the withdrawal, but returned with Harter a week later and attempted again to withdraw $10,000 in cash. This time the bank contacted the Chicago police. Galacia was subsequently convicted of theft by deception and ordered to pay $45,000 in restitution to Harter.2

The Massachusetts Executive Office of Elder Affairs is reporting a rise in the number of cases it handles in which financial exploitation of the elderly is listed as the primary allegation. In fiscal year 1997 14 percent of confirmed cases were financial. In fiscal year 2007, 25 percent of confirmed cases had a financial exploitation component.

The Bank Reporting Project began a dozen years ago as a joint effort of the Massachusetts Bankers Association (MBA), the Massachusetts Executive Office of Elder Affairs , and the Massachusetts Attorney General’s Office. The program helps train bank personnel in recognizing and preventing financial exploitation of the elderly. Already, 137 Massachusetts banks have signed up for the program.

As of July 2019, this program still exists. See webpage for more information and their training materials.

It was recognized nationally as a model of the type of measures that government and business can take to help prevent elders from abuse. With cooperation and encouragement from Governor Patrick’s Administration and Attorney General Martha Coakley, the program is now being enhanced with more training sessions for bankers and new consumer education materials in a concerted effort to thwart would-be financial abusers of the elderly.

“Prevention and education efforts are vital to protecting our seniors from scams and preventing fraud. Bank tellers and bank managers are on the front lines and are in a unique position to identify and report potential fraudulent activity,” said Attorney General Martha Coakley. “Because of the nature of these scams, and particularly in this tough economic climate, collaborative prevention efforts such as the Bank Reporting Project and training are especially important.”

Financial exploitation can take many forms and is often carried out by a family member, acquaintance or fiduciary. There are also instances in which the con-artists, scammers, and coercion specialists tries to convince an elder to do something with their money that is out of the ordinary. It could be a criminal matter or simply undue coercion not in the best interest of vulnerable and trusting individuals.

As part of the project, bankers are trained to recognize unusual activity in an elder’s account and to ask them about it tactfully without intruding on their privacy. 

“We want to protect elders while at the same time do our very best to respect their privacy,” said Kevin F. Kiley, executive vice president of the MBA and the director of the Bank Reporting Project. “We can accomplish this not only by thorough training, but by working very closely with protective service agencies across the state to whom we make referrals. The agencies step in, contact the elderly customer, and just make sure that everything is all right. If it isn’t, they know what to do to help the elderly victim sort it out or, if need be, report it to law enforcement.”

The goals of the newly enhanced program are: enhance the commitment to prevention; encourage a rapid and coordinated response; create a simple reporting protocol that maintains customer confidentiality; and establish greater cooperation between local banks and community protective services programs. There are 200 banks in the Commonwealth. Increased bank participation will improve public awareness about the extent of the problem, particularly through the use of new brochures which are available in the branches of participating banks.

The Attorney General’s Office has forged partnerships with elder organizations to raise the profile of elder protection issues and provide training to help law enforcement and elder care professionals identify, investigate, and assist in the prosecution of elder abuse and financial scams.

To report financial exploitation, abuse, neglect or self-neglect, call the Elder Abuse Hotline: 1-800-922-2275.

-Adapted from “ Massachusetts Partnership Launches Program for Elder Abuse” , News from Margolis & Bloom , Jun 26, 2008 and “Bankers, state officials launch elder scam prevention program”, Wickedlocal.com/Woburn Advocate, July 07, 2008 http://www.wickedlocal.com/reading/news/business/x19925277/Bankers-state-officials-launch-elder-scam-prevention-program. - link no longer active, 7/19

Notes:

1. Gillian Price and Craig Fox, “The Massachusetts Bank Reporting Project: An Edge Against Elder Financial Exploitation,” 8 (4) J. Elder Abuse of Neglect 59, 60-61 (1997). Cited in Sandra L. Hughes, “Can Bank Tellers Tell? –Legal Issues Relating to Banks Reporting Financial Abuse of the Elderly”, American Bar Association Commission on Law and Aging, 2003 retrieved at: http://www.ncea.aoa.gov/NCEAroot/Main_Site/pdf/publication/bank_reporting_long_final_52703.pdf

2. Michael Sneed, “Ordeal exposed many problems,” Chicago Sun-Times, December 17, 2001. Although the bank’s intervention brought a halt to Galacia’s exploitation of Harter, the bank vice president felt he could have done more, which prompted him to become active in a county task force to address financial exploitation. Id. Cited in Sandra L. Hughes, “Can Bank Tellers Tell? –Legal Issues Relating to Banks Reporting Financial Abuse of the Elderly”, American Bar Association Commission on Law and Aging, 2003 retrieved at: http://www.ncea.aoa.gov/NCEAroot/Main_Site/pdf/publication/bank_reporting_long_final_52703.pdf

Links above no longer active, 7/19.

Rev 7/19