Financial abuse is the most common form of abuse experienced by older Australians. As national demographics shift, this issue is becoming increasingly urgent. Over the past 40 years, the population share aged 65 and over has doubled, a trend projected to reach 24.0% by 2065.
So what is elder financial abuse, and can you do if you suspect you or someone you know is being targeted?
What is financial abuse of older people?
Financial abuse of older people is the illegal, unauthorised, or improper use of an older person’s funds, property, or assets. Sadly, the perpetrator is often a trusted individual. The financial abuse is most commonly committed by adult children, alongside other trusted family members, carers, or close friends. Because this abuse often occurs without the older person’s knowledge, it is particularly insidious.
Financial abuse of older people can take many forms, ranging from overt theft to subtle manipulation. Common examples include:
- Coercion and threats: Forcing or pressuring an older person to change their will, sign over property, or alter financial arrangements.
- Unauthorised Control: Taking over someone’s finances against their wishes and denying them access to their own money or bank accounts.
- Misuse of legal instruments: Abusing a Power of Attorney (POA) by making financial decisions that benefit the appointed decision-maker rather than the older person.
- Direct theft: Stealing cash, credit cards, jewellery, groceries, or other personal possessions.
- Banking exploitation: Using banking and financial documents without authorisation or adding a new signature to a bank account.
How to spot financial abuse
Financial abuse can be difficult to spot because it often happens behind closed doors. However, certain behavioural and financial changes can signal that something is wrong.
For example, an older person might have a sudden accumulation of unpaid bills or utilities, despite having adequate income. You might notice large, unexplained bank withdrawals, unusual transfers between accounts, or a sudden lack of money for everyday essentials like food and medication.
Other red flags include sudden, unexpected changes to legal documents, wills, or financial arrangements, especially if the older person seems confused by the alterations. The sudden appearance of a new friend or family member who takes over management of the person’s finances is also a warning sign.
What to do you if you suspect financial abuse
If you suspect that you or someone you know is experiencing financial abuse, it is important to take action.
The government funds the 1800ELDERHELP national helpline (1800 353 374), and this free, confidential service automatically redirects callers to their relevant state or territory service, where professionals provide information, support, and advice on handling elder abuse. The government also funds Compass, a website with resources and information on elder abuse.
If the abuse involves unauthorised banking activity or pressure regarding bank accounts, contact the relevant financial institution immediately. Customer-owned banks have specialised team members trained to handle financial abuse and vulnerability. They can place temporary holds on accounts or revoke unauthorised access to protect assets.
If a Power of Attorney is being misused, it is possible to revoke or change the arrangement, provided the older person still has the legal capacity to do so. State-based bodies, such as the NSW Civil and Administrative Tribunal (NCAT) or equivalent bodies in other states, can investigate the misuse of POAs and appoint independent guardians or financial managers if necessary.
In cases involving direct theft, fraud, physical threats, or immediate danger, contact local police.
For more information on financial elder abuse, head to Compass.