Elder financial abuse is an increasingly prevalent issue, exacerbated by the social and economic challenges of recent years, including the COVID-19 pandemic. Many elderly individuals now rely more heavily on others for assistance, coupled with a rise in first-time internet use. These factors, along with fractured family dynamics and the growing reliance on online banking and shopping, have created a fertile ground for financial exploitation.

While anyone can fall victim to financial abuse, the elderly, those with disabilities, cognitive impairments, or mental health struggles are especially vulnerable. A 2015 KPMG report revealed an alarming increase in cases where family members defrauded their elderly relatives. Although the majority of caregivers act with integrity and compassion, it is essential to recognize that this is not always the case.

Financial abuse manifests in various ways, ranging from minor financial exploitation to significant theft or fraud. It often involves unauthorized control of a vulnerable individual’s finances. The advent of online banking has also introduced new opportunities for such exploitation. Common forms of financial abuse include:

• Theft or misuse of funds or property: This can involve overcharging for goods or services, stealing cash, or mismanaging assets.
• Signature forgery: Forged signatures on financial documents make the elderly particularly susceptible to fraud.
• Control of online accounts: Fraudsters may assume control of an individual’s online financial presence under the guise of providing assistance.
• Scams and deceptive tactics: Elderly individuals are often targeted in scams, including romance scams that exploit their emotional vulnerabilities.

Financial abusers are often individuals close to the victim, such as family members, caregivers, or trusted associates. Motivations for abuse may include financial desperation, frustration over delayed inheritances, or a misguided belief in entitlement to the victim’s resources.

Spotting the Red Flags

Recognizing signs of financial abuse is critical for intervention. Indicators may include unusual withdrawals from bank accounts, abrupt changes in financial behavior, unpaid bills despite sufficient funds, or the involvement of unfamiliar individuals in financial matters. Subtle signs might include increased isolation, hesitation to discuss personal issues, or noticeable changes in confidence or demeanor.

Steps for Intervention

When financial abuse is suspected, swift and discreet action is necessary to protect the victim. Key steps practitioners can take include:

• Investigating the scope of the alleged abuse and verifying claims made by third parties.
• Alerting relevant authorities such as the police, Adult Social Care, or the Office for the Public Guardian.
• Filing an application with the Court of Protection to revoke a lasting power of attorney (LPA) or enduring power of attorney (EPA), if applicable.
• Informing any professional body overseeing the suspected perpetrator, where appropriate.

It is crucial to ensure that actions taken do not inadvertently notify the abuser, which could escalate harm to the victim.

Protecting vulnerable individuals from financial exploitation demands vigilance and a commitment to intervention. By identifying warning signs and acting decisively, practitioners and caregivers can safeguard the financial security and dignity of those most at risk.