I was wondering what is a bank's responsibility if we suspect a customer is being taken for a ride? The customer is a very nice, giving, albeit naive person who is in their early 60's. Just recently this customer has been taking out large sums of money from his accounts. The CSR noticed this different behavior and asked the customer what has been going on. Turns out the customer has been giving the money to a new friend they met at a strip club and has now bought an engagement ring for this person. The CSR is pretty convinced that this person is being taken for a ride. They just lost their job and the money they had is almost gone. So my question is, what should we do as a Bank. We don't want to get into the middle of a domestic for sure. My belief is that we have asked this person questions and tried to raise concerns to them in a subtle way. The money is only in the thousands thus far, I am not sure a SAR would be the way to go. Anyone have experience with this and what have you done?

Any idea what state resources you have for elder abuse? If you have a state agency, you may be able to file something with them or at least review their materials and see what their opinion on your scenario might be.

You know Matt, that is a great idea. I think this would qualify as the customer is significantly older than the other person.
Thanks!

Given her choice of occupation, I was hoping so!

That is an option. We had an elderly gentlemen who met these two young things at church. They told him they needed money for college, but weren't enrolled anywhere, were spending it on drugs. We reported as elder abuse, they investigated, but he just didn't care what they were really up to. He was lonely and needed the company that they supplied. They found him of sound mind and a willing participant so they couldn't take action.

The only thing we could do at that point was to close the account so we wouldn't be a party to that any longer.

At the end of the day, this guy feels as though he is in love and that the feelings are mutual. I just knew that there was something we could do without getting to stuck in the middle of a domestic situation. Its a hard balance. The elderly abuse line is the best way to take action without really getting that involved. But like you said Waldensouth, he may just continue to think that this was a match made in stripper heaven and go with it.

Google: "financial abuse of the elderly" and [your state]. Your bank may have a legal obligation to report financial abuse of an "elderly" person (which your state will define). Alternatively, you may simply be "allowed" to report it.

Any liability your bank might have would probably be driven by your failure to comply with the structure established in your state.

Acknowledge that the guy may be having the time of his life and understands that it will stop someday. Then, only his surviving relatives will be able to see the high road that you should have taken.

We had a very similar case. A very senior citizen came into a branch a few times to withdraw cash. A noticeably younger woman was waiting in the car. The branch staff knew him well enough that they asked pointed questions about the cash and the new friend. He insisted he was just having a good time and spending his money before it was too late.

The branch staff still felt uncomfortable and notified the state agency. They made contact through the local police, but they got the same response.

Not too long after, when the money was gone, he moved himself into a nursing home. In retrospect, perhaps he did know exactly what he was doing.

As an aside, when he passed away recently, his obit was very impressive. A Native American, he had joined the military after high school, and obtained a college degree in aerospace engineering. He had a long career at Boeing where he was literally a rocket scientist.

These suspected abuse cases are really tough. We've had a few others too, and the people are very resistant to the suggestion that they are being scammed. Our policy is to talk to them if possible, and report it to the state agency. If we think a crime has occurred, we contact the local police and file a SAR when appropriate. Our state law gives us a safe harbor against claims of privacy violation when we report suspected abuse to the state.

I spent the day today at our county's Agency on Aging. I spent a large portion of my time with the Protective Services division.

After a referral is made to them, they will conduct an investigation. After their interview, if there doesn't seem to be a question of the customer's soundness of mind, they will document and close the referral. If they find abuse, they will follow through.

We don't have to be judge and jury. We make the referral and they take it from there. They told me they would rather get a report and close it instead of not getting a report at all. I was shocked to find out that doctors, emergency room personnel and EMT's are not mandated reporters in our state.

I would highly recommend visiting your area's agency to learn about all the services they can provide. In addition to the protective services, it is helpful to know about all the other services they can provide.