To download the actual PowerPoint training presentation which produced the PDF handouts on the following pages, it was necessary to store the PowerPoint (ppt) file on a specially created area of the Network of Care site. Please insert the following link into your Internet browser to download the file “training_powerpoint.ppt” http://sandiego.networkofcare.org/aging/home/training_ppt.cfm Please note that the PowerPoint file is read-only and cannot be edited.

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PART 1Overview

Purpose

• To help financial institutions understand and comply with a new state law designed to protect their most at-risk customers− Takes effect January 1, 2007− Will affect all California financial

institutions

CA State Law SB 1018

• Financial institutions in California will be mandated reporters of suspected financial abuse of:− Elderly (65+) − Dependent adults (18-64 with mental,

physical, or developmental disability)

Who is Affected?Employees, directors, officers, controlling shareholders, and agents of:

• Depository institutions− Banks and savings associations

• Credit unions• Those affiliated with the above institutions− Consultants − Joint venture partners (e.g., real estate,

brokerages, credit counseling affiliates)− Independent contractors (e.g., attorneys,

appraisers, accountants)

Other Mandated Reporters• The following people must report any

abuse, financial or otherwise:− Care custodians− Clergy− Healthcare providers− Law enforcement− Social service workers− Firefighters− Paramedics− Senior agencies

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Reporting Agencies

• Adult Protective Services (APS) and Long-Term Care Ombudsman− Both are part of Aging & Independence

Services (AIS), which is a department of the county’s Health & Human Services Agency

AND/OR• Law enforcement− Police or sheriff’s departments

Types of Abuse• Most commonly known: physical abuse− Assault or battery, sexual abuse, chemical

or physical restraint, over/under-medicating• Other kinds of abuse− Neglect; self-neglect; abandonment;

isolation; abduction; emotional or verbal abuse/mental suffering

• And what you are mandated to report: Financial abuse/exploitation

Definition

Financial abuse is defined as:• Taking, secreting, appropriating, or

retaining real or personal property• Assisting in the above

Scope of Problem

• Number of elderly is booming− In 2000: 3.6 million Californians 65+− By 2020: 6.2 million (projected)

• Elder/dependent adult abuse in California:− 1 million+ incidents yearly (estimated)− But only 1 in 5 are reported

SourcesPopulation data: U.S. Census BureauAbuse incidence data: California Attorney General’s Crime and Violence Prevention Center

Scope of Problem

• Financial elder/dependent adult abuse in California: − 600,000+ incidents yearly (estimated) − But only 1 in 25 are reported

• Amount “stolen” from elders/dependent adults nationwide− $ 40 billion/year

SourceFinancial exploitation data: National Center on Elder Abuse and U.S. Census BureauEconomic impact data: County of San Diego District Attorney’s Office

High Cost of Abuse• Seniors− Suddenly broke, potentially homeless− Financial abuse victims’ mortality rate

is three times higher than non-victims• Society− Supporting the previously self-sufficient− Straining taxpayer and social services

systems

SourceMortality data: Journal of the American Medical Association, 1998.

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What Can You Do?• Financial institutions have always been

very customer focused− Concerned with protecting assets,

preventing losses, safeguarding information

• Banking relationships very important to elderly− Trusted, long-term, personal

relationships• Financial institutions in unique position

to recognize all types of financial abuse

What Can You Do?• Let your customers know about the law• Train your employees (ongoing) to:− Recognize signs of abuse− Watch for changes in patterns− Learn the latest scams− Use provided resources

• Cooperate with reporting agencies− Provide supporting data− Complete paperwork

• Reinforce/reward staff efforts

Obligation to ReportElder/dependent adult abuse:

• On bank premises/transaction sites− Whether customers, non-customers,

applicants, former customers• Seen or suspected while providing

financial services via:− Personal contact with victim/abuser− Telephone or remote contact with

victim/abuser− Routine or requested review of financial

documents, records or transactions

No Legal Obligation• To investigate to determine abuse− Although other laws (e.g., Bank Secrecy

Act) may mandate this• To report abuse that an elder/dependent

adult alleges:− If employee has no evidence to corroborate

allegations and doesn’t believe them true• To report observed abuse off the job− But as caring citizens, it’s the right

thing to do

Potential Liability

• No legal liability in California if wrong− Communication is granted “absolute

privilege” as an “official proceeding authorized by law”

• Law based only on “reasonable suspicion”− Direct observation or proof of abuse is

not required− Consensus opinions of suspicion is

not required

Potential Liability

• Failure to report abuse subjects financial institutions to fines:− Up to $1,000 per incident; $5,000 for

willful failure− Enforceable by civil action initiated by

the District Attorney, County Counsel,or Attorney General

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Customer PrivacyExisting privacy laws provide for confidentiality of individual financial records, but:

• Institutions may respond to state/local officer/agency (e.g., APS) inquiries about:− The existence of accounts− Account or other identifying numbers

• Upon certification, in writing, that a crime report for suspected fraud was filed:− Records must be released− Limited to 30 days prior and 30 days

following each occurrence

Customer Privacy• These records are limited to:*− Number and dollar amounts of dishonored items− Number and dollar amounts of paid items

resulting in overdrafts− Dates and amounts of deposits/debits,

and account balances on these dates− Credit arrangements involving overdrafts− Signature cards− Account opening/closing dates− Account statements

• Any other records require accountholder’s written consent or court order

* Requirements may be different for out-of-state institutions.

Administration• Training is advisable for:− Department heads, managers and

supervisors− Loan officers− Customer service/new accounts staff− In-branch frontline personnel− Telephone staff − Behind the scenes personnel:

wire transfer operators, credit reviewers, item processors

− Trust services providers− Notaries

Administration• Incident reporting− If in progress, call law enforcement;

otherwise, as soon as possible, to APS/Long-Term Care Ombudsman

− Written report (Form SOC 342) is required within 2 working days

• Up to financial institutions to decide:− If reporting should be centralized

or by branch (as long as reporting is not delayed)

− How SB 1018 affects existing SAR (Suspicious Activities Reports) policies/procedures

Tools/Resources AvailableFree templates from APS and paid options from other sources will be made available in English (and Spanish, when possible):

• To let customers know− Posters and stuffers − Articles for customer-directed

newsletters/websites− Links to websites containing more

information− Awareness features in County-

distributed publications

Tools/Resources Available• To assist staff− Overview/scope brochures− Training presentations (trainer and

staff directed) − Pre- and post-training tests− Scam descriptions/updates− Employee newsletter articles/

electronic bulletins− Resource list (contacts, phone numbers,

forms, websites, collateral sources, etc.)− Annual recognition event/certificates

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PART 2

Recognizing Abuse

Types of Financial AbuseTheft of income abuse

• Typically less than $1,000 per transaction− Stealing/misuse of funds− “Borrowing” money and not paying

it back− Wiring money− Signing and cashing checks without

permission− Unauthorized credit card use− ATM abuses

Types of Financial AbuseTheft of assets abuse

• More complex, involved documents− Coercing or deceiving someone to sign

(will, trust, contract, Power of Attorney)− Forging signatures− Improper use of authority (Power of

Attorney, conservatorship)− Establishing credit accounts and loans− Real estate transactions (transfer of title,

refinancing, equity lines)− Identity theft− Tax manipulation

Popular Scams• Theft of asset scams− International lotteries − Advance “claim fees” tied to

inheritances/sweepstakes− “Home repair” and unsolicited work− Investment property and “stop

foreclosure” scams− Financial institution “examiner”

fraud− Bogus charitable donations− Government grant schemes− “Trust mills”

Popular Scams− Predatory lending scams− Annuity scams− Sweetheart scams aimed at

widows/widowers− Fictitious relative scams− Telemarketing pitches− Chain letters− Entitlement scams

• Internet scams− Phishing, spoofing, pharming− Internet sales or online auction fraud− Foreign/offshore scams

Signs of Financial Abuse• Sudden change in banking activities—

actions inconsistent with past routine− Large and/or frequent withdrawals

(especially cash)− Frequent ATM withdrawals (especially

by customers who do not use ATMs)− Unusual increase in bounced checks

and repeated overdrafts − Many out-of-sequence checks− Statements routed to address other

than victim’s

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Signs of Financial Abuse• Sudden change in banking activities (con’t)− Names added to/deleted from accounts− New loans (especially ones with

balloon payments)− New credit cards− Increase in credit card activity− Credit card balances (when previously

paid-in-full)− Closing accounts− Unpaid bills (even though victim

has adequate resources)

Signs of Financial Abuse• Sudden change in banking activities (con’t)− Payments made for clearly unnecessary

or inappropriate services− Request for Power of Attorney for

financial affairs (when customer does not understand implications)

− Newly or frequently executed/changed documents (living trusts and wills)

− Property refinancing with cash out− Property owners who are not co-borrowers− Sudden transfer of assets, particularly

real property

Signs of Financial Abuse• Undue influence: someone taking

advantage of their position of power over another person− Customer induced to conduct unwise

financial transactions or sign documents not in own best interest

− Customer turns to third party for validation

− Third party provides verbal and non-verbal coaching

− Third party does not let customer speak

Signs of Financial Abuse• Change in customer behavior− Seems worried, nervous, or fearful in

presence of third party − Decline in appearance/hygiene− Pressing need for immediate funds− Very excited about winning something

or meeting someone• Steady money trail from victim to abuser− Caregiver paid too much or too often− New, previously uninvolved relative

or “friend” appears, claiming customer assets

Signs of Financial Abuse• Victim appears confused about, remorseful,

or unaware of transaction− No knowledge of recent credit/debit

cards or charges− Unable to explain transactions− Expresses concern about information

given out to solicitors− Reports being financially exploited

Profile of Likely Victim• Does not need to be cognitively or

physically impaired• Typically isolated and dependent

on abuser• Agitated, impressionable, afraid,

confused• May have signs of physical abuse

or neglect• Avoids speaking with well-known,

long-time employees

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Profile of Likely Abuser• Person in position of trust, involved in

victim’s life• May be family member or non-family

member; even professionals• High interest in victim’s transactions,

balances, credit lines, assets• Dependent upon victim for financial

support or supplementary income• May have employment problems• May exhibit addictive behavior

Handling Suspected Abuse

• Cautiously confirm third party’s authority− Avoid confrontation

• Try to speak privately with victim (away from the abuser)

• Delay the suspicious transaction, if possible− Tell customer additional verification

is required

Handling Suspected Abuse• Determine customer’s intent − In customer’s own words,

without prompting− Ask questions to make sure customer

understands implications/results of requested transaction

− Offer customer safer alternatives (e.g., check vs. large sum of cash)

• Contact supervisor for assistance, guidance, and reporting procedure

Importance of Reporting • Increases options for keeping those

at risk safe• Links those at risk, and their families,

to beneficial community resources• Increases awareness among those in a

position to help (family and friends)• Prosecution of abusers takes them “out

of the game,” thereby protecting others• Relief in knowing professional help

is now involved• Helps protect institution from potential loss

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PART 3

APSResponse

Reporting AgenciesAdult Protective Services (APS)

• Mandated by state of California to investigate allegations of elder/dependent adult abuse

• Accepts reports 24/7• Accepts reports from: − Financial institutions, social workers,

doctors, law enforcement, paramedics, clergy, relatives, neighbors, friends, the alleged victim, any concerned individual

Reporting AgenciesLong-Term Care Ombudsman

• Oversees abuse issues involving residents of licensed care facilities (e.g., residential care, skilled nursing, adult day care)

Law enforcement• Mandated by state law to contact APS

on all elder/dependent adult abuse issues• Should be called first (911) if abuse

appears life-threatening or loss of assets seems imminent

Confidentiality and Liability

• Unless court ordered, identity of reporter not revealed except to investigating and licensing agencies

• Law extends civil and criminal liability protection to reports made in good faith

Investigative Process• What happens to victim?− If victim is in immediate danger, immediate

steps will be taken to ensure safety− Otherwise, APS will make an in-home visit

within 10 days or sooner, if warranted− APS will recommend services to reduce or

eliminate the abusive situation− Monitoring/follow-up provided as needed

• What happens to alleged abuser?− APS works with law enforcement and DA

to investigate, and prosecute abusers

APS Services

• APS aids victims by:− Contacting caregiving agencies− Arranging for in-home services

(home-delivered meals, household chores, safety planning)

− Filing police reports− Helping to safeguard assets− Helping to secure restraining orders− Referring bill payment and money

management resources

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APS Services• APS partners with:− Other county and community agencies− Examples: In-Home Supportive Services,

Public Guardian, care management agencies, senior centers, etc.

• Acceptance of APS services is voluntary− However, in cases of alleged criminal

abuse, neglect, or exploitation, APS is required to investigate and notify law enforcement

APS Services

• Cost of services− APS consultations/recommendations

are free, regardless of income− Fees may be involved for client-

requested contracted services (e.g., home care worker)

ADULT PROTECTIVE SERVICES

1-800-510-2020

This educational campaign is being funded by the Barona, Sycuan, and Viejas Bands.