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Older people are 33% more likely to lose money in a scam than any other age group, according to Elder Abuse Prevention Ontario, and only 5% of victims report it to the police.   Once someone has been defrauded, they are likely to be targeted again.  What are banks doing to prevent financial abuse against older people?

The Bankers Association of Canada works with banks and law enforcement to help protect customers against financial crime and to promote fraud awareness.  The Association created several codes of conduct for banks to sign onto, including the Seniors’ Code, which applies to customers over the age of 60.  While the Code is voluntary, banks in Canada have committed to following it.  According to the Bankers Association of Canada’s website, here are some examples of what banks are doing to support the seven principles of the Code:

1. Banks will establish and implement appropriate policies, procedures, and processes to support the Code

In support of this principle, banks have internal policies and procedures to support employees when they are engaging with older customers.  These will often include a series of training modules and internal resources to assist employees in recognizing circumstances when older clients may need additional assistance with their banking activities and identifying and escalating incidents of suspected financial abuse or fraud.

2. Banks will communicate effectively with seniors

In branches, some examples of what banks provide are:

• Customer information centres that include topics relevant to older clients.
• Education for all clients, particularly older ones, about wire fraud scams.

Online, you will often see banks providing tips for how customers can avoid fraud, and instructions on what to do if they suspect they are being defrauded.

Banks’s commitment to meeting the accessibility needs of older customers is visible in a variety of ways including accessible bank machines and branches, and accessible or alternate document formats when a customer requests them.

3. Banks will provide appropriate training to their employees and representatives who serve seniors

Customer-facing employees and third-party representatives who offer bank products or services, are required to complete training that equips them with the knowledge and skills needed to effectively communicate with senior customers, including how to identify and escalate concerns.

4: Banks will make appropriate resources available to client-facing employees and representatives to help them understand matters relevant to seniors’ banking needs

Banks with employees in branches with a high proportion of senior customers often exchange ideas and provide feedback on resource materials aimed at older clients.  A variety of resources are available to customer-facing employees to help them understand issues relevant to the varying banking needs of seniors.

5: Banks will endeavour to mitigate potential financial harm to seniors

Banks have tools and investigative procedures in place to help prevent and reduce financial harm to all customers, including seniors.  Some examples include potential reimbursement for customers who have been affected by unauthorized activity on their account where they have met their security responsibilities, and scam identifier tools and notifications.

6: Banks will take into account the needs of seniors when closing a bank branch

Banks need to consider the needs of their older customers when they close a bank branch, as they may be particularly impacted by it.  Banks often reach out proactively to older customers and senior residence locations in the community to provide support.

7: Banks will publicly disclose the steps they have taken to support the principles set out in the Code

The annual Public Accountability Statement outlines the Bank’s commitment to the Code of Conduct for Delivery of Banking Services to Seniors.

In Summary

The Seniors’ Code of Conduct sets out principles for banks to proactively combat financial abuse against older clients.  For more information about what banks are doing to fulfill their duties under the Code, see their respective websites.

Written be Holly LeValliant, Scotiatrust