During a Senate hearing today, the American Bankers Association Foundation outlined the critical role banks play in protecting older Americans from fraud and financial exploitation while calling for strengthened national coordination, expanded financial literacy efforts and clear federal authority for banks to intervene when exploitation is expected.
The Senate Special Committee on Aging held a hearing on financial education tools to help prevent fraud. In prepared remarks, Sam Kunjukunju, vice president for consumer engagement at the ABA Foundation, explained that banks are uniquely positioned to help older customers recognize and avoid scams due to their trusted, long-standing relationships and daily interactions with consumers.
Still, banks can’t fight fraud alone, he said.
“While the banking industry is investing significantly in protecting older people, the scale and sophistication of today’s scams require a strategic and coordinated national response,” Kunjukunju said. “America needs a nationwide public education campaign that brings together federal agencies, nonprofits, and the private sector to deliver a unified, consistent message.”
Legislative tools
A national effort to fight fraud must be grounded in a broader commitment to lifelong financial literacy, and it should align with key life milestones, including entering the workforce, managing credit, starting a family, purchasing a home and planning for retirement, Kunjukunju said.
He also called on Congress to consider legislation that would provide banks with clear authority and safe harbor protections to delay or hold transactions when elder financial exploitation is suspected to help safeguard older Americans at moments of heightened vulnerability.
“Through sustained investments in education, training, cross-sector partnerships, and responsible innovation, we continue to strengthen the frontline defenses to combat elder financial exploitation,” Kunjukunju said. “But as our population ages and financial crimes grow more sophisticated, these efforts must be accompanied by a policy framework capable of meeting the moment.”
