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  • About
    • Membership
    • News
    • Boards and Committees
    • Alice Dittman Trailblazer Award
    • NBA Foundation
    • Leadership Program
    • Staff Directory >
      • Contact Us
  • Workforce
    • Careers
    • Post Job Openings
  • Advocacy
    • Legislative Update
    • BankPAC
    • Comment Letters
  • Compliance
    • Handbook
    • Compliance Update
    • Compliance Alliance
  • Education
    • Event Calendar
    • In-person Events/Training
    • Webinars
    • ABA Training
    • Banking Schools
    • CYBERSECURITY TRAINING
    • Sponsorships and Exhibits
    • Young Bankers (YBON)
  • Insurance
    • Agency Services >
      • Commercial Insurance
      • Personal Insurance
      • Livestock, Irrigation and Farm Insurance
      • Surety Bonds
    • Bank Property & Liability
    • Financial Institution Insurance
    • Benefit Plans
  • Bank Resources
    • Preferred Vendors
    • Associate Members
    • Marketing Resources
    • Financial Literacy
    • Single Bank Pooled ​Collateral Program
    • Bank Security
    • Compensation & Benefits Survey

News

ARTICLE

Date ArticleType
10/26/2020 Press Release

Financial Exploitation Protections Take Effect Nov. 14

Beginning Nov. 14, Nebraska banks will have a new way to protect their customers. A law goes into effect which allows financial institutions to place a hold of up to 30 days on a transaction if they suspect a customer is a victim of financial exploitation. The new regulations protect anyone over the age of 65 or vulnerable adults, defined as someone who has substantial mental or functional impairment or who has a guardian or conservator appointed.

 

Financial institutions are also authorized to provide notification to family members or other third parties who can assist the senior or vulnerable adult. The protections enhance the ability of financial institutions to take action to protect their customers by protecting them from liability if they stop or delay a transaction because exploitation is suspected.

 

“Banks often see cases where people have lost their assets due to fraudulent transactions,” said George Howard, vice president of Five Points Bank of Hastings. “Banks want to help customers protect their assets and this new law is an important tool in that fight.”

 

Older Americans are especially vulnerable to fraud attempts. They hold 70% of the deposit balances in the United States, which makes this group an attractive target for scam artists. According to the Federal Trade Commission, older Americans lost nearly $440 million to fraud in 2019, a $40 million increase from 2018.

 

Banks have long-standing training and practices in place to help detect and prevent these losses. According to a 2019 American Bankers Association Survey, 90% of banks require specialized training to detect elder financial exploitation. Banks also regularly report suspected financial exploitation to Adult Protective Services. However, their ability to protect their customers was hampered by existing regulations. Financial institutions often cannot take actions that would address financial exploitation because of restrictions on disclosing customer information.

 

“Banks are on the front lines of fighting fraud attempts,” said Richard Baier, president and CEO of the Nebraska Bankers Association. “Our members are pleased to have a new option to help safeguard their most vulnerable customers.”

 

For more information on the new financial exploitation protections and other tools to fight financial exploitation visit https://www.nebankers.org/financial-exploitation-protections

 

Media Contact:

Kara Heideman, Director of Communications & Marketing, Nebraska Bankers Association, kara.heideman@nebankers.org, 402-474-1555

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