Regulators say that it is not a violation of privacy in the Gramm-Leach-Bliley Act for financial advisers to report suspected financial abuse of the elderly to local, state or federal agencies. Not only are they permitted to do this, but regulators are encouraging banks and other financial advisers to report instances of suspected exploitation of the elderly.
The Gramm-Leach-Bliley Act states that no financial or broker firm has the right to disclose a client's information to a third party without first informing that client and giving them the opportunity to refuse the release of this information. Disclosing information regarding possible abuses to government agencies is not barred by this act, according to a statement released Tuesday.
The Director of the Consumer Financial Protection Bureau stated "Reporting suspected elder financial abuse to the appropriate authorities is typically the right thing to do and generally will not violate the Gramm-Leach-Bliley Act."
The director went on to explain that senior citizens are common targets of financial abuses such as investment fraud because not only do they possess accumulated assets at their age, but many of them also suffer from weakened mental aptitude.
Banks and other financial institutions are encouraged to be on the lookout for activity such as:
- Irregular transactions,
- Repeated large withdrawals,
- Purchase transactions uncommon for older adults,
- Attempting to wire large amounts of money at random,
- Closing accounts despite penalties, and
- Any other uncommon or suspicious activity.
If you believe that your elderly loved one has fallen victim to a financial scam and suffered significant losses, please contact an investment fraud lawyer at Meyer Wilson today to receive a free evaluation of your case.
Watch the video below for more information on elder financial abuse.