Financial Elder Abuse Reporting Act
- The state of California has a large population of elderly persons. More than 3.5 million people aged 65 years and older live in the state. This number will increase due to the number of baby-boomers nearing the 60-year mark. Approximately 100,000 Californian elders fall victim to financial abuse and exploitation every year.
- California law defines the financial abuse of an elder as any action that uses the financial or personal assets of the elder without the elder's permission. It is also using financial or personal assets in way in which the elder would not approve. It includes improperly accessing the elder's accounts, withdrawing funds without permission, forging the elder's signature on documents, or convincing the elder to withdraw or sign over large amounts of cash. Along with the above, HelpGuide.org includes scamming the elder with phony investments, charities, and opportunities to win prizes and identity theft. Signs of financial abuse include large bank withdrawals and the addition of a new acquaintance on a signatory account.
- Under the California law, employees of banks, savings associations and credit unions are required to report suspected cases of elder financial abuse. Employees are required to report "behavior or transactions that would lead a person with similar training to form a reasonable belief that an elder is the victim of financial abuse." The report must be made directly to Adult Protective Services or to another designated law enforcement agency. Employees must file a report by telephone as soon as possible and file a written report within two days of the incident.
- Training employees how to recognize abuse is mandatory under the law. The training must cover several concepts. These concepts include what constitutes financial abuse, how to recognize abuse, how to work with Adult Protective Services to report abuse violations, and how the agency investigates reported cases of abuse.
- According to the Office of the Governor, banks, savings associations and credit unions sustain large fines for failing to report suspected financial abuse of the elderly. Financial institutions can be fined up to $5,000 for each failure to report an incident. In addition, the law "extends immunity from civil liability for making such reports."