What is elderly financial abuse?

It's hard to pin down the prevalence of elder financial abuse in Australia with the most recent government-commissioned study suggesting around 2% of older people are victims.

But many more are unlikely to know it is happening to them with another study estimating more than one in ten older Australians have felt pressure to give money or assets, usually from family members.

National elder abuse phoneline (free service): 1800 353 374

In an emergency or if you're not feeling safe, always call 000.

What is elder financial abuse?

Elder financial abuse can take many forms, including:

• pressure to give or loan money
• the theft or misuse of money or assets without permission
• not contributing to shared household expenses
• coercion to sign documents in another's financial interests or without full understanding
• abusing Power of Attorney duties
• forging signatures
• restricting access to accounts or financial statements

Sadly, the perpetrators of such abuse are generally close family members but can also be friends, carers, neighbours, and even professional advisors.

Elder financial abuse facts

The National Elder Abuse Prevalence Study, based on a survey of people aged over 65 living in the community, found:

• 2% reported experiencing financial abuse in the previous 12 months
  
• Main perpetrators were more likely to be male than female (65% vs 35%)
• Sons were twice as likely as daughters to be 'main perpetrators' (22% vs 11%)
  
• Financial and mental health problems were common among main perpetrators
• Children, mainly sons, were the largest perpetrator group accounting for one-third of financial abuse perpetrators
• 3 in 10 who experience financial abuse sought help or advice
• More than half of those seeking help had told a friend or family member

Why is elder financial abuse underreported?

Researchers agree elder financial abuse is widely underreported in Australia and there are many reasons for this, including:

• fear of retaliation or losing care or companionship
• embarrassment, shame, or self-blame
• emotional ties to the perpetrator
• cognitive impairment that prevents some older people recognising the abuse

Ian Henschke

National Seniors Chief Advocate (2017-2023)

Expert commentary

"I think there's a growing awareness about financial elder abuse and that's happened over the last 10 or so years because we've now got more and more people reporting there's a problem.

“It's a bit like the situation was some years back with child abuse. People were not talking about it and the most important thing to do is to raise awareness so that people know that it happens.

“Sadly, a bit like child abuse, it's often people that are very well known to the victim such as family members who are the perpetrators.

“But theft is theft, regardless of whether you are stealing from your mother or your father or your daughter, or your son. This is something that I think we have to actually recognise."

What are banks doing to prevent elder financial abuse?

The Australian Banking Association (ABA) has drawn up industry guidelines in a bid to help banks identify and address suspected cases of elder financial abuse.

Here are some of the warning signs it's identified - when the customer:

• appears to be coerced into making transactions
• remains silent while another party does the talking or appears to be taking instructions
• appears withdrawn or fearful, particularly of the person accompanying them
• does not appear to understand documents they are signing or transactions they are approving
• is not aware of recently completed transactions
• withdraws large or unusual amounts of cash
• makes withdrawals from unusual locations
• expresses concern about missing funds
• makes unusual requests such as adding additional signatories or switching to digital access

Actions banks can take

According to the ABA's guidelines, banks should take steps to protect customer confidentiality and safety, including:

• identifying safe way to communicate with them
• ensure contact details are the customer's and not their representative's
• support customers with products that can help them manage their own affairs
• help change passwords or PINS
• provide guidance to customers regarding formal arrangements for a trusted person, such as an enduring power of attorney, to help them manage their finances
• review disputed transactions quickly
• refer the customer to external support
• report abuse to relevant authorities where appropriate

There are also guidelines to assist bank staff in identifying possible abuse by those with formal power of attorney status and across digital banking platforms.

Is enough being done to stop elder financial abuse?

State and territory governments oversee guardianship and power of attorney laws which are designed to protect older people when they are unable to manage their own affairs.

Some seniors organisations have been calling for the laws to be standardised nationally but, so far, there is no formal move in that direction.

Instead, the federal government has come up with a 'National Plan to End Mistreatment of Older People 2024- 2034' framework. The plan focuses on awareness, support services, and possible future legal reform.

Currently, elder financial abuse falls under the umbrella of coercive control legislation in the states that have passed such laws, making it a criminal offence.

How to prevent elder financial abuse in your family?

National Seniors Australia recommends family members:

• appoint two or more people to help an elderly family member manage their affairs
• protect passwords/PINs and documents
• ensure extensive record-keeping
• have another family member review financial records on a regular basis
• seek professional advice in setting up a formal enduring power of attorney arrangement with a trusted, capable person

Who to contact

Letting another trusted person know of your situation is an important first step.

Ask them to help you contact your bank or financial institution which should have protocols in place to protect your funds and assist you in negotiating the situation. This can be done discreetly if you are wary of the repercussions of whistle-blowing.

The federal government's elder abuse hotline is another good place to start. This service can direct you to the best local services and provide targeted advice for your situation.

National elder abuse phoneline (free service): 1800 353 374

The federal government's Moneysmart website also provides a list of other free and confidential services, including:

Source: MoneySmart