Nacha is broadening its support for banks and financial institutions in tackling elder financial abuse. The organization’s Payments Innovation Alliance has developed new tools aimed at helping account holders who may be at risk from elder fraud and raising awareness about financial exploitation targeting older adults.

Tools for Fighting Elder Fraud

Nacha is releasing these resources in conjunction with World Elder Abuse Awareness Day (WEAAD), observed annually on June 15. Among the tools are a checklist to assist banks and credit unions in supporting older customers who have experienced scams.

The guidance encourages financial institutions to establish clear internal escalation protocols for suspected elder financial exploitation, available to account holders who have been victims of fraud, as well as offering support to those reporting attempted scams.

Highlighting the Scale of Elder Exploitation

Nacha has also produced an infographic emphasizing the extent of the issue. In the U.S., adults over 60 lose approximately $38.5 billion annually due to elder financial abuse, with an average loss of $83,000.

The Face of Elder Fraud

A key concern in addressing elder fraud is that it often involves individuals trusted by the victim. Nacha defines elder fraud as the use of deception, intimidation, or undue influence by a person in a position of confidence to obtain an elderly person’s property or resources. It can also include breaches of fiduciary duty such as misuse of a power of attorney or guardianship appointment.

Law enforcement, families of elderly victims, and the financial industry face significant challenges because scam victims are frequently hesitant to seek help, according to Tracy Goldberg, Director of Cybersecurity at Javelin Strategy & Research. Many do not even acknowledge that they have been victimized.

Raising Awareness and Offering Support

An AARP study referenced in the Nacha infographic reports that 92% of adults aged 50 and over desire trained employees at their financial institutions to recognize and prevent financial exploitation. However, not all tools used are specifically tailored to the types of fraud being committed.

While education about scams has improved significantly, most campaigns remain generalized both in content and approach,” said Goldberg. Educational efforts should focus on encouraging older consumers to be wary of anyone who exerts undue pressure or fails to respect their wishes during a call.”