New York state financial regulators are calling on firms to adopt best practices to prevent the exploitation of seniors.

The state’s Department of Financial Services (DFS) issued regulatory guidance that sets out best practices for helping prevent financial exploitation of senior citizens. The guidance includes procedures to help financial institutions spot and report red flags that are indicative of elder financial abuse.

“Elder financial exploitation is often a silent crime committed by a person the victim trusts. That makes it all the more important that we use every tool at our disposal – in partnership with our state’s financial institutions – to identify and stop those who would seek to prey on New York’s senior citizens,” said Benjamin Lawsky, superintendent of financial services.

The agency notes that a 2011 study found that financial exploitation is the leading form of elder abuse in the state, and yet it is also severely under-reported. It says that financial institutions can help prevent elder abuse by developing policies for spotting exploitation; training front line staff regularly on those organization policies; and, appointing staff to investigate suspected abuse, and report this information to other authorities.

The guidance also reminds financial institutions that, if they suspect financial exploitation, federal law permits them to report certain nonpublic financial information of their customers to authorities. It also provides immunity from civil liability for financial institutions, and individuals working for them, who in good faith report suspected financial exploitation.

“It is important to be proactive in fighting this crime, and these procedures will help banks spot red flags before it is too late. I urge all financial institutions to implement these guidelines and help ensure that no transaction exploits our senior citizens,” Lawsky said.

DFS also issued a survey to banks and credit unions seeking information on the policies those institutions currently have in place to protect older customers from financial exploitation.