Question: What kind of activity has the bank seen involving elderly fraud and scams?

Answer: The most common fraud committed against the elderly is the door-to-door home improvement scam. This scam involves a person showing up at their door dressed as a contractor or carpenter, informing the elder that their home looks in serious need of repair.

The job usually requires roof repair, driveway repaving and house painting. Once inside, the fraudster will identify certain areas of the house needing termite repairs and replacement or upgrading to meet "the new codes." They may start with one repair, and it can lead to more. The elder is left with a torn-up house despite having written numerous checks for these repairs. We’ve seen our elders lose hundreds of thousands of dollars and, in one case, millions.

Some scams are very elaborate, well planned — taking years to play out — all calculated to separate the elder from their money, house and property, leaving them and their family with nothing at the end. Sales solicitations, sweepstakes and lottery scams through the mail are also very prevalent and are presented in such an official-looking format.

Q: Are there any patterns or warning signs?

A: There are a number of subtle clues that tend to indicate financial abuse may be occurring such as sudden or frequent large cash withdrawals or other unusual banking activity. The closing of Certificate of Deposits account without any regard to penalties or fees. Multiple checks written to cash or the same individual in large amounts is highly suspicious, as is an elder customer suddenly receiving a number of large-dollar wires from individuals on the mainland or a foreign country followed by sometimes the elder withdrawing the money in cash almost immediately. 

Other clear warning signs include a person younger than the elder showing up at the bank with the elder and speaking for the elder customer usually requesting that their name be added

to the account or that an elder’s account be closed and combined with another account with the individual as a co-signer.

Concerned family members can play a big role in the prevention of financial exploitation by someone who has targeted their parents or grandparents by

taking notice of new or unfinished and unnecessary repair work being done on the elder’s residence.

They should ask questions about what’s being done and who is doing it for them. Unfortunately, one of the first instructions the fraudsters impress upon the elder is the need to be secretive about what they are doing because they are getting such a good deal, no one else should find out about it or the deal will fall through and they may lose out and have to pay more.

Q: What can people look out for?

A: When it comes to financial exploitation and elder abuse, it’s important for people to ask questions to ensure that the elder understands the transaction they are engaging in, whether it is hiring a contractor to do repairs or withdrawing money.

When the elder shows up at the bank with an unknown person and that unknown person shows an excessive interest in the financial affairs of the elder and, in particular, the welfare of the elder, this could potentially be an abuse situation.

Usually, the elder remains silent or passive while the person with them asks the questions and starts to make suggestions. The elder tends to agree with what the person with them is saying and recommending, but when they are separated and the elder is asked if they know the person with them or understands what the other person is requesting, the elder most always does not understand what is happening and why, and may not even acknowledge that the person with them is a family member.

Q: Do you have a system to flag unusual or suspicious activity?

A: It’s all about knowing our bank customers and recognizing certain clues that indicate a commonality to elder financial abuse. We do extensive training with our employees who know what to look for and what to do in the event they suspect one of our customers is experiencing elder abuse.

Q: What can someone do if they suspect that their elderly relative is being victimized?

A: If a family member, close friend or business partner suspects or detects that an individual is a victim of elder abuse, they should report their suspicions to the state of Hawaii Department of Human Services, Adult Protective Services at their earliest opportunity. If they suspect the abuse is in progress and that the elder may be in danger or may be poised to give a large amount of money to a stranger or a person claiming to be a family member, they should notify the nearest police department via 911.

The Honolulu Police Department has taken their role in the fight against elder abuse to a top level by assigning the Criminal Investigation Division — Financial Crimes Investigation Unit and designating two detectives full time to the investigation of elderly abuse and financial exploitation of the elderly. I credit Lt. John McCarthy for instituting the program, which has produced many successful investigations and prosecutions of those responsible.

Q: Are the scammers typically strangers or relatives or someone who’s trusted by the victim?

A: Typically, the fraudster focused on the elder’s finances and property is a caregiver or someone who has taken up the role of caring for the elder.

They could be a licensed professional or the neighbor down the street who has discovered through various means after getting close to the elder that the elder has a considerable amount of cash, property or both.

Family members will sometimes get involved and take up the role of assisting their parents or grandparents with their finances since they may seem unable to take care of themselves — in the eyes of the family member.

Q: How can you tell a legitimate call from a scam?

A: Culling out a legitimate call from a scam call could be as easy as dismissing the caller by asking them to send you the information in the mail at the address they have for you.

Getting off the phone quickly will help an elder avoid giving out their bank routing and account number or their credit card number. And remember, if the deal sounds too good to be true, it probably is.