Financial Counseling Certification Program (FiCEP) Practice Exam

What might indicate that an individual is experiencing financial exploitation?

1. Regularly increasing bank balances

2. Frequent low-balance notifications from banks

3. Unusual account activity or transactions

4. Consistent withdrawals for personal expenses

The correct answer is: Unusual account activity or transactions

Unusual account activity or transactions can signify financial exploitation for several reasons. This may include unexpected transfers, withdrawals, or purchases that deviate from the individual's normal banking patterns. Such changes can indicate that someone else is accessing or using their accounts without permission, or that the individual may be pressured or manipulated into financial decisions that don't align with their best interests. Patterns like these can alert family members, caregivers, or financial institutions to potential exploitation, prompting further investigation or protective actions. The other indicators, while they might raise questions about an individual's financial health, do not specifically point towards exploitation. Regularly increasing bank balances could suggest good financial management or an increase in income. Frequent low-balance notifications may simply indicate budgeting issues rather than exploitation. Consistent withdrawals for personal expenses might reflect normal spending habits, without implying foul play. Together, these points highlight why unusual activity stands out as a key sign of potential financial exploitation.