Financial elder abuse - know the signs
While financial abuse can happen to anyone, it is a particular problem for our older generation. Around half the cases of elder abuse that Age Concern work with include financial abuse, and at Public Trust we are dedicated to helping keep vulnerable community members safe.
This Elder Abuse Awareness Week (15-21 June), Public Trust is spreading the message that you don’t have to face things alone and there is help available when you need it. We’re standing alongside community leaders to raise awareness about financial elder abuse and share practical advice from trusted experts, including Age Concern.
While the issue is serious, there are steps you can take to protect yourself and the people you love. Recognising the signs of elder abuse and knowing where to go for help can make a real difference. There are trusted people and organisations ready to support you. Most importantly, you are not alone.
Recognising financial elder abuse
It can be hard to pick up on the subtleties that are weaved into any type of abuse as it really does come in all shapes and sizes. With financial elder abuse, the abusers are often closely connected and have some kind of bond with their victim.
Things to watch out for are:
· Any adult using someone's home and assets without contributing to the costs.
· Older people often try to support adults they care about so they might not fight back or realise they are a victim putting themselves in a vulnerable situation.
· The creation of, or changes to, wills and enduring powers of attorney (EPAs) can sometimes be cause for concern. While these documents are meant to help protect people and clarify their wishes, they can also be situations where someone is vulnerable to pressure or undue influence. It’s important you are not pressured, forced or manipulated into making decisions that do not reflect your wishes.
· Strange transactions. Unpaid bills, lack of spending money and unusual looking withdrawals from accounts are tell-tale signs that something isn't quite right. If you suspect a loved one is being exploited you should let their bank know.
· New names being added to bank accounts and other accounts or assets, like property ownership.
· Change in behaviour. A possible victim can become withdrawn from friends and family. They might appear confused about their finances or anxious when money is discussed. Trust your instincts if a loved one’s behaviour feels ‘off’.
· Change in behaviour of a caregiver, family member or other trusted person. Do they seem controlling, and not letting the person speak alone or answering questions on their behalf? Are they showing excessive interest in the person’s financial situation or things like inheritance?
· An adult child organises for their parent to move their parent’s legal work away from their own longstanding family solicitor to a new law firm. This can be a red flag because families often have long-standing relationships with particular law firms. The solicitors get to know the family over time and, in particular, know the family dynamics – which children might be difficult, which are supportive etc. The estate planning arrangements set in place by the law firms reflect these dynamics. If an adult child takes their parent to a new lawyer, the adult child can be deliberately side-stepping the old law firm. The new law firm has no background knowledge of the older person. They might be unaware that new will instructions are a departure from previous wills and without knowing why.
Scam relationships
Unfortunately, financial and psychological abuse are often intertwined and are weaponised by people wanting to exploit vulnerable people for financial gain. These situations can be disguised as genuine relationships, with perpetrators presenting themselves as friends, companions or often as a romantic relationship.
Things to watch out for here include a person or people previously unknown to a victim suddenly becoming a part of their day-to-day life or an unlikely suitor claiming a legitimate romantic connection. Romance scams are often run via phone or internet, so any new relationship that is not face to face is another red flag.
Misuse of enduring powers of attorney
While EPAs are an important part of planning ahead and offer good protection, they are not a total safeguard against financial abuse. Would you be able to spot misuse of EPAs? Sadly, this kind of abuse is often carried out by close family and friends as the older person who has appointed them to be their attorney, trusting that they would act honourably.
This kind of abuse can take different forms:
· Embezzlement. This is when the person who has the legal rights and access to the accounts (the attorney), uses the anticipated likelihood of receiving an inheritance as an excuse to take money or assets. Often claims are made of 'borrowing' with the justification of: “Oh, dad wouldn't mind if he was all there.”
· A display of entitlement to someone's belongings. Unless someone has explicitly stated they are happy to share their belongings, this could be seen as theft.
· Denying someone's access to care services like a rest home, in order to maximise the size of the estate that will be left behind for the attorney to eventually benefit from.
· Conversely, the situation of an attorney placing someone prematurely in care to suit their own agenda.
· Selling a home without the knowledge or permission of the rightful owner(s).
· A property attorney could try to direct a solicitor to deposit proceeds of the sale of an older person’s house into an account jointly owned by the older person and the property attorney.
Where to get help
Take the step. You’re not alone.
Did you know Age Concern branches around the country receive 12 calls about elder abuse every weekday? That's real people facing harm, isolation or self-neglect, and looking for someone they can trust.
If you suspect you’ve been a victim of elder abuse, you don’t have to face things alone. If something doesn’t feel right, if someone is making you uncomfortable, or if you’re unsure where to turn, there are people who will listen and support you.
You can seek advice from an independent organisation with experience like Age Concern about how to approach a situation you have queries about. Approaching a potential abuser directly can increase harm for an older person.
· Call 111 if you think someone is in immediate danger and needs urgent help or 105 for non-emergency support
· Elder Abuse Response Service is a confidential, 24-hour free helpline. Phone 0800 EA NOT OK or 0800 32 668 65, or text 5032
· Age Concern - 0800 652 105 – please call for free and confidential advice
· Visit ageconcern.org.nz for more information.