Elder Fraud
purpose of a transaction. And even though RCU educates members to safeguard private information, “Fraudsters are relentless and persuade targets to give up their account credentials, passwords and even security codes,” Kaufman reports. While technology makes fraud easier for scammers, it also makes it easier for financial institutions to identify attempts while they’re taking place. “Our fraud detection systems are quick to catch unusual activity and notify members if a transaction needs validation,” she says. It also pays for individuals to be diligent. Rodriguez gives presentations on fraud with Sonoma County Ombudsman Crista Nelson, and she tells elders and anyone related to them, “Don’t click that link in your email. Don’t ever give out any information over the phone. Go directly to the source. If it purports to be your bank, call your bank. If it purports to be Costco trying to get your membership renewed, hang up and call Costco.” Her biggest message is that victims shouldn’t be ashamed or embarrassed or feel any stigma. “The people who are committing these crimes are so sophisticated and so good at what they do, and the psychological coercion they use is so effective that anyone could be a victim of fraud,” she says. “The idea isn’t to punish people. It’s really to safeguard elders,” she adds, and every measure taken, whether it’s going public with an unfortunate story that someone else could learn from or taking time to check the legitimacy of a transaction, is one more step in the right direction. g Reporting elder fraud The Sonoma County District Attorney’s Office recommends calling one of the following if you or an elder you know is a victim of fraud. Local law enforcement Adult Protective Services Elder Protection Unit at the District Attorney’s Office Department of Consumer Affairs State Contractors Board The FBI’s Internet Crime Complaint Center, IC3
recipient and can’t give a satisfactory
explanation for the transfer of
funds. The pause would allow time for a trusted third party to determine whether it’s legitimate. “Some banks were actually. aiding and abetting these scams by agreeing to wire funds,” Dodd says, because they sent the money requested without question.
Mishel Kaufman, of Redwood Credit Union.
At first, 13 financial and business organizations were opposed to the bill, because the original version included a $10,000 fine for every complaint against a financial institution and allowed consumer attorneys to take them to court. Dodd saw no reason to pile on fines, however, and after changes to address the issues and ensure that the proposed legislation wouldn’t unduly delay legitimate transactions, the bipartisan bill passed both houses at the end of August unopposed. Nevertheless, Gov. Gavin Newsom vetoed the bill at the end of September over fear it would interfere with lawful transactions, even though Dodd had worked with groups such as the California Bankers Association, which was unopposed to the bill after changes to allay its members’ concerns. The future of SB 278 is now uncertain. Legislators in the Senate and Assembly cannot serve more than 12 years, and Dodd termed out at the end of 2024, so he will not be able to reintroduce the bill. “However, he is encouraging his colleagues to reintroduce it and to work with the governor’s office to address his concerns and get this important consumer protection measure across the finish line,” said Dodd’s press secretary Paul Payne. Meanwhile, Dodd says that while some banks are already following good practices, not all are, and new measures would help. He adds that credit unions rarely have problems, because they’re local and focused on their members. Redwood Credit Union collaborated with Dodd’s team to help craft the bill, and Mishel Kaufman, chief operating and risk officer, says they appreciated the opportunity. “The security of our members’ accounts and information is our top priority,” she says, explaining that RCU provides specialized training for employees to help them recognize suspicious situations and ask questions to determine if elder members might be at risk. RCU also offers community education sessions; five such sessions have been held recently, including one at a retirement community. Kaufman finds that some of the most common attempts to defraud elders involve lottery scams, IT support and cryptocurrency investments. Regardless of what kind of fraud it is, preventing it can be challenging. “Scammers spend a lot of time preparing their targets for any questions their financial institution might ask,” she says, and so victims might conceal the
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34 NorthBaybiz
February 2025
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