CFG Elder Financial Exploitation & Consumer Protection Flashcards
6 cards from real CFG practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CFG Elder Financial Exploitation & Consumer Protection flashcards as text
What is the role of Adult Protective Services (APS) in cases of elder financial exploitation in the US?
Answer: APS investigates reports of abuse, neglect, and exploitation of vulnerable adults and connects them with protective services
APS agencies, operated at the state and local level, investigate reports of elder abuse, neglect, and exploitation, and arrange protective services to safeguard vulnerable adults.
Which federal resource allows individuals to report elder financial fraud and connect with local support services?
Answer: The National Elder Fraud Hotline (1-833-FRAUD-11), operated by DOJ
The National Elder Fraud Hotline (1-833-FRAUD-11), managed by the DOJ's Office for Victims of Crime, connects victims and families with case managers who provide support and referrals for elder financial exploitation.
What is a 'guardianship' (or conservatorship), and when might it be appropriate in elder financial exploitation cases?
Answer: A legal arrangement where a court appoints someone to manage an incapacitated adult's financial and/or personal affairs
Guardianship (personal care) and conservatorship (financial matters) are court-ordered arrangements that grant a designated person authority to make decisions for an adult deemed legally incapacitated.
Which of the following best describes a 'suitability' obligation for financial advisors working with older clients?
Answer: Advisors must ensure all recommendations align with the client's age, financial situation, risk tolerance, and investment objectives
Suitability requires that financial advisors recommend products and strategies that are appropriate for each client's specific circumstances, including their age, health, financial situation, and risk tolerance.
What is 'cognitive bias' in financial decision-making, and which bias most commonly leads older adults to fall victim to scams?
Answer: Authority bias; seniors defer to perceived experts or authority figures, making them vulnerable to impersonation scams
Authority bias leads individuals to trust and comply with perceived authority figures, which fraudsters exploit by impersonating IRS agents, Medicare representatives, or law enforcement to scam older adults.
Which of the following strategies is MOST effective for a CFG in helping prevent elder financial exploitation for an older client?
Answer: Establishing a trusted contact, setting up account monitoring alerts, and educating the client on common scams
A multi-layered protective approach—including designating a trusted contact, enabling transaction alerts, and client education on scam tactics—is the most effective strategy for preventing financial exploitation.