Independent Banker - October 2023 - 27

Next: Do you need cybersecurity insurance? 
better picture of what's normal
for an account holder, providing
indispensable fraud detection
while saving time. " Analytics can
save hours of detection. Machine
learning that builds a profile of
the person can prevent patterns
of exploitation, " explains Jilenne
Gunther, national director of
BankSafe, an online training
program on elder exploitation from
AARP that's made for frontline
employees of financial institutions.
All AML platforms involve
transaction monitoring, which is
usually customizable. Pioneer Bank,
for example, uses Fiserv's AML.
" We have a sophisticated system
that shows expected activity on an
account, " Smith says. The Fiserv
system can configure accounts for
signers over 70 to generate alerts
when unusual activity occurs.
Terri Luttrell, compliance
and engagement director for
Abrigo, a software firm providing
compliance, credit risk and lending
solutions, urges banks to look for
solutions that specifically target
elder fraud.
" Fraud is fraud, but for elders,
the technology should be looking at
Elder fraud resources
Learn more about ICBA's
Elder Financial Abuse training
at icba.org/educationseries,
launching soon.
the patterns of the elderly, " she says.
" Fraud detection should spot red
flags such as early CD withdrawals,
wire activity or unusual retail
purchases. " As an example, Abrigo's
BAM+ transaction monitoring
software can set scenarios by
age, adjusting alert parameters
appropriately.
Spotting patterns gives bankers a
potent weapon. " BSA officers look
for the transaction that's wrong. We
believe you have to look for behavior
that changes over time, " says Todd
Rovak, cofounder and CEO of
Carefull, which provides AI-powered
monitoring of fraud, senior-specific
scams and financial mistakes made
by older adults.
It's not always a stranger
Looking at long-term changes can be
especially useful in identifying what
is sometimes called " familiar fraud, "
or fraud perpetrated by a trusted
caregiver or a relative.
" Analytics can save
hours of detection.
Machine learning
that builds a profile
of the person can
prevent patterns of
exploitation. "
-JILENNE GUNTHER, AARP
" People are focused on the texts or
emails that we're all getting, but it's the
systematic $10,000-a-month account
withdrawal for two years that can be
so devastating, " Rovak says. " Only one
in 44 of those gets reported to police,
because you don't report your family. "
Bankers can help elders by educating
them and/or their caregivers in
technology. " Knowing your customer
is always the biggest priority for
community banks, " says Evan
Richards, senior policy and political
strategist for the Maryland Bankers
Association. " Working with someone
who is not as familiar with technology
is an important way to build trust. "
Well-trained staff, as Pioneer Bank
proved, can prevent fraud. Smith
reports that the bank requires its staff
to take ICBA's online Elder Financial
Abuse training annually. " Our staff is
very aware, and I feel like they do a
very good job of detecting it at the front
line, " she says.
Simple delay can be a powerful tool
to thwart fraud. " When somebody
is being exploited, the perpetrator is
using fear, " explains AARP's Gunther.
AARP's BankSafe program trains
participants in how to ask questions
that help the customer think through
their transaction.
" You want to maintain trust with the
customer and ask questions in a way
that the potential fraud becomes more
apparent, and the customer realizes
something is amiss on their own, "
Gunther says.
Rovak points out that their
commitment to defeating elder fraud
can differentiate community banks.
" This is a huge issue. Community
banks are running on trust and
relationships. Here's how you make
good on that before they walk into the
bank with a crisis. "
Judith Sears is a writer in Colorado.
QUICK STAT
84%
The rise in elder fraud
from 2021 to 2022
Source: FBI Internet Crime Complaint Center
independentbanker.org // 27
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Independent Banker - October 2023

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