How to protect yourself from financial abuse

Written by Sue Williams for Australian Seniors

It can be as simple as a carer keeping the change after shopping for an aged client or as horrifying as a son or daughter stealing a parent’s home out from under them. But whatever form elder financial abuse takes, it is always shocking, often devastating and sometimes absolutely catastrophic for the victims.

Even worse, at a time when the population is ageing and cost of living pressures are increasing, it’s a rising crime wave, with experts believing that the cases uncovered are simply the tip of the iceberg. “Elder abuse is any act which causes harm to an older person and is carried out by someone they know and trust,” says the Commonwealth Bank’s head of customer vulnerability, Caroline Wall. “Sadly, the perpetrator is often a family member.”

A growing concern for seniors

The 2021 National Elder Abuse Prevalence Study research conducted by the government’s Australian Institute of Family Studies found one in six Australians aged 65 and over living in the community – not in aged care – had been subject to at least one kind of abuse. Financial abuse represented 2% of cases, although experts say it’s one of the most under-reported crimes in society today, so the real figure is likely to be much higher.

Despite its prevalence, elder financial abuse can be difficult to identify because it’s often hidden or minimised. As a result, it’s common for people to be embarrassed when talking about financial abuse because it’s very difficult even to acknowledge it to themselves or to others, and therefore to attempt to stop or control it.

With around 25% of Australia’s population expected to be over the age of 65 by 2055, it’s a growing problem, too. “There are currently a lot of financial pressures on people and so we are seeing more abuse of older Australians, with the perpetrators

frequently their adult children,” says Diedre Timms, co-chair of Elder Abuse Action Australia (EAAA).

“Victims are nervous about speaking up as they might not want to lose access to their grandchildren or the help their children give them, especially if they’re reliant on them to manage their affairs. We often have people phoning our helplines and telling us what’s going on, but they don’t want to take it further as they don’t want to see their children charged with crimes.”

 Signs of elder financial abuse

Financial abuse can take many different forms. It might be something as simple as spending a person’s money without their permission, or could be as cold-blooded as forging signatures, coercing someone to sign something, pension-skimming, using someone’s bank account or credit card without consent or denying them access to their money or bank statements.

Sometimes, it might be a loan that isn’t paid back, a child pressuring parents to invest in their business, buying a house for them on their behalf or going guarantor on a loan – with a threat of putting them in aged care.

It might even involve moving back home and refusing to pay their share of expenses, covertly stealing cash or promising to take care of them but siphoning off money for their own use instead.

In aged care, it’s often about being billed for services that aren’t used or available. There are also always cases of people taking on Power of Attorney (PoA) or Enduring Guardianship without permission and riding roughshod over their elders’ affairs.

“The difficulty is that people are afraid to speak up about it,” says Craig Gear, CEO of the Older Persons Advocacy Network (OPAN), which dealt with around 2,800 cases last year.

“We’ve seen people pushed into aged care when they’re not ready, so their children can take their house, or a case worker who endears themselves to a client and takes on their financial management. Sometimes, it’s service providers like carers or hairdressers who pick up the abuse, and the banks are really good now, too. But the cost pressures of life are increasing the challenges of financial abuse and we need more awareness of the help available.”

Who is the most vulnerable to financial abuse?

The most vulnerable to elder financial abuse tend to be older people who are alone or isolated. They might have a physical or mental disability, come from a migrant or refugee background, have a limited understanding of English or finance, or be from a First Nations heritage.

Veronica Johnson is a financial counsellor working with First Nations communities through Broome CIRCLE and says it is rife throughout Western Australia and the Northern Territory. Those in remote communities often have to rely on others to visit their bank or do shopping using their credit card, and theft can be a huge risk.

“We’ve done a lot of work with banks around elders having to continually cancel their cards because they’re compromised, and then being left with no access to money at all,” she says.

If anyone suspects they are being financially abused, or that a member of their family is being targeted, Caroline says it’s vital to talk about it. “Offer support without judgement and keep written records. And always ensure your elderly family has a safe and supportive network of people they trust, including both family and professionals.”

Common online scams

When recently widowed Michael, 71, received a phone call that his bank account had been compromised, he was alarmed. The caller was reassuring, however. He could make sure Michael remained safe if he followed a few simple instructions. He told Michael to go to his computer and download some software. Michael faithfully obliged. Two days later, all the money in both his accounts vanished – a total of $83,000. His bank says it’s unlikely it will be refunded.

“Con artists use panic to manipulate their victims,” says Kevin ‘Mac’ Mason, who has carried out detailed research on every kind of computer scam from his MacMason Training and Repairs shop in Lithgow, NSW. He runs courses for seniors on how to keep themselves safe from scammers and tricksters.

“I always tell people to check their heart rate. If they receive a call and feel scared or uncomfortable or angry, and their heart rate goes up, they should put the phone down immediately. And if anyone phones up or emails you and tells you to download software, never do it!”

He says older people should build a web of people they trust around them, like trusted family and friends – people they can call for advice whenever they’re not sure what to do. And if they do get a call from someone saying they’re from the bank or other finance institution, then they should put the phone down and ring the main number, or physically visit a branch, he advises.

How to protect yourself against financial abuse

Try to educate yourself about your financial affairs and make sure you’re aware of the risk of financial abuse and what it might look like, the experts say.

Useful sources of information are:

• OPAN’s self-advocacy toolkit
• The EAAA’s guide to elder abuse
• Commonwealth Bank’s Safe & Savvy guide

In addition, always look after your bank and financial cards and never hand the pin or password to anyone else, the ABA recommends. If someone asks for money, discuss it first with a trusted family member or friend.[11] 

Keep track of the money in your accounts and investments, and put in place arrangements like a power of attorney early, just in case something happens to you.

If you need help, you can call:

• The National Elder Abuse helpline, 1800 353 374.
• An OPAN advocate on 1800 700 600.
• The abuse hotline 1800RESPECT (1800 737 732).