Older adults can be especially vulnerable due to changes in health, isolation, or reliance on others for help with finances. Scams, theft by family or caregivers, and pressure to hand over funds are common examples. Financial institutions like banks and credit unions are often the first to spot warning signs because they see day-to-day account activity.

When bank staff suspect elder financial exploitation, institutions have clear federal obligations under the Bank Secrecy Act, plus recommended best practices from agencies like the Financial Crimes Enforcement Network (FinCEN), Federal Deposit Insurance Corporation (FDIC), and Consumer Financial Protection Bureau (CFPB).

These steps help protect customers, support law enforcement, and keep institutions compliant. Here’s a straightforward summary of exactly what banks and financial institutions must do—and what leading agencies recommend as best practices.

File a Suspicious Activity Report

Under federal law, financial institutions must file a Suspicious Activity Report (SAR) with FinCEN if they know, suspect, or have reason to suspect that a transaction:

• Involves funds from illegal activity (including elder financial exploitation).
• Has no apparent lawful purpose or is not the kind of activity the customer would normally do.
• Has no reasonable explanation after looking at the facts.

This applies even if the amount is below the usual $5,000 threshold in some cases, though voluntary SARs are also encouraged for smaller or borderline situations.

SAR filing must happen within 30 days, or sooner if needed.

Key SAR filing rules specific to elder financial exploitation:

• “Elder Financial Exploitation” box is checked on the SAR form (Field 38(d)).
• In the filing notes (Field 2), will include the reference “EFE FIN-2022-A002”.
• In the narrative section, banks will clearly explain why the activity looks suspicious. Include details like behavioral changes observed, transaction patterns, the older adult’s age and location, any staff who noticed the issue, and what the institution did.

Institutions must keep SAR records and supporting documents for at least five years and provide them promptly to FinCEN or law enforcement when legally requested. Banks cannot tip off the suspected abuser that a SAR was filed—this is illegal.

State Reporting Requirements

Federal law does not require banks to report directly to state Adult Protective Services (APS) or local police in every case.

Institutions should know their state’s specific rules. Reporting to APS or law enforcement does not violate federal privacy laws like the Gramm-Leach-Bliley Act, according to joint guidance issued in 2013. The Senior SAFE Act also offers legal protection for good-faith reporting when staff have been properly trained.

Recommended Best Practices When Suspicion Arises

While the SAR is the core federal requirement, agencies like FinCEN, the FDIC, CFPB, and others highlight practical steps that help institutions respond effectively and prevent further harm. These are not always mandatory but represent widely endorsed risk-management approaches for financial institutions:

• Train employees regularly — Staff at all levels (tellers, relationship managers, compliance teams) should learn common red flags, such as sudden large withdrawals from a normally quiet account, wires to unfamiliar people, gift-card purchases, or an older customer who seems fearful or coached during a transaction. Training should cover how to document concerns and escalate them internally without alerting the suspect.
• Follow internal protocols — Staff should have a clear written process for reviewing suspicious activity, deciding on account holds or delays (where legally allowed), and communicating with the customer. Many institutions now offer “trusted contact” options so they can reach a designated family member or advisor in potential abuse cases.
• Consider temporary transaction holds — When permitted by law and account agreements, a short delay on large or unusual transfers can give time to verify legitimacy or alert authorities—without violating customer rights.
• Report promptly to other agencies — Even when not required, contact local APS, law enforcement, or other responders. Provide records quickly when they request them through proper channels.
• Support the customer — Refer the older adult to helpful resources, such as the Department of Justice’s National Elder Fraud Hotline (833-372-8311 or 833-FRAUD-11). Victims can also file complaints with the FBI’s Internet Crime Complaint Center (IC3) or the FTC. Institutions may share general educational materials on scam prevention.
• Collaborate — Work with community partners, APS, and law enforcement for faster investigations and better outcomes.

Why These Protocols Matter

Elder financial exploitation can wipe out life savings and harm health and independence. Quick action through SARs and other reporting has already helped flag billions in suspicious activity. By following these steps, banks not only meet legal obligations but also act as a vital safety net for older customers.

Institutions should review their policies against the latest FinCEN advisories and the 2024 interagency statement, and consult legal or compliance experts for state-specific details. For more resources, check official sites from FinCEN, the CFPB’s Office for Older Americans, or your state’s APS program.