.2408151217082.jpg)
Elder financial abuse is an increasingly serious issue with devastating effects on individuals and families across California. To combat this growing problem, Senator Bill Dodd, D-Napa, has introduced Senate Bill 278 (SB 278). This bill aims to provide greater protection for elders against financial exploitation and abuse.
Overview of Senate Bill 278
Starting January 1, 2026, SB 278 will require certain financial entities to establish an emergency financial contact program for their account holders. These entities must notify a joint account holder or an emergency financial contact if they suspect that a financial transaction is the result of financial abuse.
Additionally, the bill mandates that these financial entities delay any suspicious transactions by at least three business days. This delay is intended to provide time to investigate and prevent potential financial abuse. Importantly, these entities will have immunity from administrative, civil, or other liabilities that might arise from delaying or refusing a transaction based on suspected abuse.
The bill also allows for the implementation of similar protections for account holders who are not elders or dependent adults.
The Legislative Journey of SB 278
Senator Dodd first introduced SB 278 in February 2023. It has since passed through multiple Senate committees and was approved on May 22, 2023. On June 25, 2024, Attorney Kirsten Fish of Needham Kepner & Fish LLP testified before the California State Assembly Judiciary Committee. Following Ms. Fish’s testimony, the Judiciary Committee approved the bill, and it now moves forward to the California State Assembly Appropriations Committee.
Ms. Fish’s stirring testimony can be viewed online.
Attorney Fish’s Role as a Key Advocate
Attorney Kirsten Fish has been actively involved in advocating for SB 278. She has worked closely with Senator Bill Dodd, the Consumer Attorneys of California, and the California Low-Income Consumer Coalition to push for stronger legal protections against elder financial abuse.
Examples of Elder Financial Abuse
Financial abuse can come in many forms. If you have older loved ones, stay aware of the following.
Unauthorized Transfer of Funds
Abusers can be anyone, including family members or caretakers. Bad actors might use their position of trust to access the elder’s financial information and siphon money without permission.
Fraudulent Investments
Scammers may persuade older adults to invest in non-existent or high-risk ventures, promising high returns. These investments often result in significant financial loss.
Identity Theft
In cases of identity theft, criminals use the elder’s personal information to open credit accounts, apply for loans, or make unauthorized purchases.
Telemarketing Scams
Elders often fall prey to telemarketing scams, in which criminals call and offer fake products, services, or charitable causes. Scammers may also pose as government officials or utility workers to extract personal and financial information.
Manipulation of Legal Documents
Manipulating or coercing elders into changing their will, power of attorney, or other legal documents is a more insidious form of abuse. Abusers might pressure elders to sign over assets, property, or control of financial matters, leaving them vulnerable to further exploitation.
Protecting Older Loved Ones from Financial Abuse
Protecting elders from scams requires vigilance, education, and proactive measures. Here are several steps you can take to safeguard your older loved ones.
Maintain Open Communication
Establish regular and open communication with your elder loved ones about their finances. Encourage them to talk to you about any suspicious activities or concerns. By staying involved, you can quickly identify and address potential issues.
Monitor Financial Activity
Regularly review bank statements, credit card bills, and other financial documents for unauthorized transactions. Consider setting up alerts for significant withdrawals or unusual transactions. Joint accounts or financial management services can also help monitor and manage finances more effectively.
Educate on Common Scams
Educate your elder loved ones about common scams targeting seniors, such as telemarketing fraud, phishing emails, and fake charity solicitations. Inform them that they should never give out personal or financial information over the phone or online unless they are certain of the recipient's legitimacy.
Legal Safeguards
Encourage the creation of legal documents that clearly manage and distribute assets. Such documents can include wills, trusts, and durable powers of attorney. Make sure these documents are reviewed periodically and updated as necessary.
Choose Trusted Financial Contacts
Help your elder loved ones designate trusted individuals as emergency financial contacts. These contacts can intervene if there's a suspicion of financial abuse, providing an additional layer of security and oversight.
Secure Personal Information
Ensure that personal and financial documents are stored securely, whether in a locked drawer or a safe. Shred any sensitive documents that are no longer needed. Also, install reliable antivirus software and password protection on any devices used for financial transactions or personal communication.
Be Aware of Caregiver Activities
If your elder loved one has a caregiver, be mindful of their activities and interactions with the elder. Conduct background checks before hiring and periodically check in to ensure there are no signs of financial exploitation.
Needham Kepner & Fish LLP is here to help protect you and your loved ones from financial scams. To meet with our team, you can call us at (408) 716-1668 or contact us online.