Elder financial abuse

Estimated reading time
 4 min

Key points

• Elder financial abuse is unthinkable, and yet, the threat is very real for older people in our lives.
  
  
• The more we understand the signs, such as emotional manipulation, the better we can be at helping to spot financial abuse in older people.
  
  
• Anyone can experience elder financial abuse, but some things can make you more vulnerable like those with cognitive impairments or an isolated lifestyle.

Whether you dreamed of relaxation on an exotic beach, joining the hordes of seniors roaming our country, or even spending more quality time with your family, there’s one thing you planned to rely on: your finances. 

And as we age our finances can become vulnerable to the sticky fingers of fraudsters (and even family).

While no one wants to think about themselves or a loved one being financially abused, knowing the signs is the first step in protecting those you love. According to Seniors Rights Victoria, research shows that up to 15% of older people may be experiencing elder abuse. The Australian Government found that 2% of those surveyed in the National Elder Abuse Prevalence Study (NEAPS) had experienced financial abuse in the past 12 months, and sadly, most of the abuse comes from people they trust.¹

We’re here to help you understand this complex subject and ensure you can spot the signs to help keep the finances and assets of those you love safe from harm.

What is elder financial abuse?

First, it’s essential to know that elder financial abuse can happen to any older person – not just the wealthy or mentally impaired – and it’s never okay. When those we trust do us harm, it can be challenging to confront; learning the signs can help you know what to watch out for.

Elder financial abuse is the exploitation of an older adult’s money or assets without their consent or improper use of their funds, causing them financial harm. 

What does elder financial abuse look like?

Financial abuse can come in many forms, but some common tactics used by perpetrators might include:

• Emotional manipulation: “If you don’t help me, I won’t have anywhere to live.”
  
  
• Coercion: “Sign over the property, or you’ll regret it.”
  
  
• Ultimatums: “You can’t see your grandkids unless you pay for money.”
  
  
• Deception: “I’ll take care of the rent. Just give me your card details.”
  
  
• Misuse of authority or trust: “I’m here to look out for you.”

Scams and cybercrime in elder abuse cases

While elder financial abuse is usually perpetrated by someone you know, it can come from cybercriminals making contact online. These can be through romance scams, phishing, bank impersonation, or any other kind of cybercrime. Educating those you care about on how to use the internet safely and identifying signs of a scam can help protect them from cybercriminals.

5 signs of elder financial abuse

Edward Tawil, ANZ Lead Specialist from Customer Connect, suggests looking out for transactions that don’t align with the older person’s usual behaviour. For example, if they suddenly start sending money to overseas countries, this could indicate financial abuse.

Here are some other signs for older friends or family members to watch out for.

1. You notice an elderly family member or friend is behaving differently, seems stressed or is becoming reclusive.
   
   
2. If an elderly person appears malnourished or cannot afford essential items, including groceries.
   
   
3. You notice large withdrawals or unusual account activity on their accounts, as mentioned above.
   
   
4. The older adult has made changes to their rental or mortgage agreement, will, or Power of Attorney.
   
   
5. Unpaid bills or new credit cards are arriving under their name even though they still need to sign up for them. 

Who is most at risk?

The reality is that elder financial abuse can happen in any family, no matter how close you are, but some things can increase your vulnerability, including:

• Cognitive impairment – due to an illness such as dementia, Alzheimer’s, or Parkinson’s.
  
  
• Living alone or being isolated from social contact.
  
  
• Children with financial issues or mental health conditions (children of the elders in question are the most common perpetrators).
  
  
• Relying on others for language translation or if others are doing your banking.
  
  
• Those with family members who feel entitled to their assets. 

How can you help prevent elder financial abuse?

Edward says there is a lot of stigma around elder financial abuse, and it can be difficult for someone to come forward asking for help. The more we can talk openly with older friends and family members about their safety, the better off they will be.

These tips can also go a long way in preventing people from taking advantage of you or someone you love.

• The best way to prevent elder financial abuse is to check in with elderly friends and loved ones regularly.
  
  
• Set up an Enduring Power of Attorney. This should be someone you trust, have known for a long time, or know has your best interests at heart.
  
  
• Keep financial details and personal documents secure, and do not allow anyone to access them without consent.
  
  
• Never give out personal or financial details to someone who calls on the phone.
  
  
• Contact your bank if you notice anything unusual on your accounts.

Where to report elder financial abuse and find support

• If you or someone you love is experiencing financial abuse, contact your bank immediately. If you’re an ANZ customer, contact us immediately to report the abuse.
  
  
• If your credit card details have been compromised, ‘block’ or cancel those cards immediately. If your cards are with ANZ, you can report the compromised card through the ANZ app or by calling us. 
  
  
• If the abuse happened through a romance scam, report the account to the dating app and the messaging app you used to communicate with the cybercriminal. 
  
  
• If you or someone you love is experiencing elder abuse in any form, contact 1800 ELDERHelp or 1800 353 374. You will be redirected to the existing phone line service in your state or territory.
  
  
• For a confidential discussion with an experienced counsellor, call Lifeline on 13 11 14.
  
  
• Help others by reporting to Scamwatch or to the Australian Signals Directorate’s Australian Cyber Security Centre’s ReportCyber.
  
  
• You can also contact IDCare, a not-for-profit organisation providing support to those experiencing identity and cyber security concerns.
  
  
• If you’re an ANZ customer, you can report fraud or suspicious activity in multiple ways, such as through the ANZ app or by calling us