Finding new ways to prevent the financial abuse of the elderly is of increasing concern in the U.S. The aging population has led to more frequent incidents of abuse. However, stopping the abuse as it is occurring has proven to be a challenge.
The abuse is often not detected until after it has occurred, and it is too late to do anything about it. Some abuse is never caught at all. This has led government agencies and elder law advocates to think about new ways to detect abuse.
FINRA, a self-regulatory agency for brokers, has just implemented a new rule it hopes will help with the problem as Consumer Reports discusses in "New Ways to Prevent Elder Financial Abuse."
Brokers are now required to ask all their customers for the contact information of a trusted person whom the broker can contact if financial abuse is suspected. If a broker suspects a client is being exploited, then a hold can be put on the account for 15 days. It can also be extended for another 10 days, if necessary.
Contact law enforcement and an elder law attorney for assistance, if you suspect that someone is being abused.
Reference: Consumer Reports (Feb. 2, 2018) "New Ways to Prevent Elder Financial Abuse."