We have an elderly customer who had a couple helping her to care for her husband while he was ill. He passed away and the couple continue to get money from the lady. When we questioned her, she said they are doing work for her but now he has begun altering checks she has written. He is cashing the checks elsewhere. He has even stolen at least one check and forged her signature and when we contacted her she refused to prosecute on the altered and forged checks. Do we, as the bank, have an obligation to report this to anyone, and if so, who do we report to?

You absolutely should report this, especially if you have knowledge of a forgery. Who you report to will depend on your state laws.

Call your state's equivalent of the Department of Human Services or Department of Financial Institutions and inquire about the correct role for your institution. Verify what you are told before you spill the beans (some public advocates are a bit overzealous in their explanation of what the bank's responsibilities are).

In general, banks are either "voluntary" or "mandatory" reporters of financial abuse of the elderly; i.e. your law may allow you to do it or it may require you to do it.

Again, get a citation to statute or regulation and read it or have the bank's attorney read it. Do not just take advice from an employee of a public agency.

As an aside, only the customer can assert a forgery or alteration. You may begin reviewing her items and, if appropriate, use "irregular signature" or "apparent alteration" as your reason for return if you do it before the midnight deadline. That will heat things up for sure.

Thank you for the advice. I have been getting varying opinions from my fellow employees. My next call is to our attorney!