Nebraska Banks' Role in Stopping Vulnerable and Senior Adult Abuse

The financial exploitation of vulnerable or senior adults is something Nebraska bankers witness regularly. An NBA-initiated law passed in 2020 allows financial institutions to protect these individuals by placing transaction holds on suspicious activities. This law empowers banks to potentially uncover financial exploitation and provides legal protection when they act in good faith to report these crimes.

Bankers play a key role in preventing financial abuse and protecting at-risk individuals by recognizing the signs, acting in good faith and implementing transaction holds. Financial institutions can delay or refuse transactions if they reasonably believe financial exploitation of a vulnerable adult or senior has occurred, is occurring or is being attempted. 

Legal Protections for Banks: The law provides legal protection to financial institutions acting in good faith when placing transaction holds to prevent vulnerable and senior adult abuse. Additionally, bankers are protected in the event they choose not to act.

Definition: Under this law, a vulnerable adult is defined as someone at increased risk of exploitation due to age, disability or other factors, including individuals over 65 or those with physical or cognitive impairments.

Indicators: Indicators include unusual transaction patterns, large or frequent withdrawals inconsistent with the account holder’s history, sudden changes in spending habits or reports from vulnerable adults or their relatives.

Duration of Holds: The hold can last up to 30 business days to allow for investigation. Extensions are possible if necessary.

Third-Party Notification: Banks may, but are not required to, notify a trusted third party about the transaction they are holding. This step can help in verifying the legitimacy of the transaction.

Additional Resources

• How to Report: Suspected vulnerable or senior adult abuse can be reported to Nebraska Adult Protective Services (APS) at 1-800-652-1999 and local law enforcement. Financial professionals are not mandatory reporters of APS in Nebraska.
• American Bankers Association (ABA) - Safe Banking for Seniors: Training and resources for identifying and preventing elder financial exploitation.
• AARP: Tools and information to help seniors and families protect against financial abuse.
• National Center on Elder Abuse: Information and resources on preventing elder abuse.