Financial abuse is the act of controlling another person or misusing their money or assets for personal financial gain.

There are various forms of financial abuse, including:

  • Misuse of a person’s funds
  • Pressuring a person to make changes to their Will
  • Pressuring a person to make gifts during their lifetime
  • Not acting in a person’s best interests
  • Scamming a person or stealing from them
  • Arranging loans in another person’s name

Sadly, financial abuse of the elderly is not uncommon. Elderly people are often at a higher risk of suffering financial abuse due to the fact that they are usually more vulnerable and reliant on others, for example they might live alone or be living with a condition such as dementia.

The perpetrators of financial abuse are often known to the victim and can be people on whom the victim relies, such as family members or caregivers.

If you are close to an elderly person, then you may be able to spot potential signs of financial abuse. Some of the ‘red flags’ which can be indicators of financial abuse include the following:

  • Changes in the elderly person’s financial activities i.e. making more transactions than usual, opening new bank accounts and not paying bills even if funds are available.
  • A new person becoming very involved in the elderly person’s day to day life and influencing their decision making.
  • Isolation from loved ones or those who have supported that person up to now.
  • Sudden changes to the elderly person’s Will.
  • Behavioural changes i.e. confusion or secrecy.
  • Excessive phone calls or emails from third parties to the elderly person requesting payments.

What steps can be taken to avoid financial abuse?

One step that can be taken to reduce the risk of financial abuse is to prepare a Lasting Power of Attorney for Property & Financial Affairs so that there are trusted individuals in that elderly person’s life who can keep an eye or assist with their financial activities and intervene, if necessary.

If you suspect that an elderly person is being financially abused, it is important that you report this immediately either to the Police, Adult Social Services or an organisation such as Hourglass (previously named Action on Elder Abuse) (0808 808 8141) or Age UK (0800 678 1602).

If you require any information about preparing Lasting Powers of Attorney, please contact me on 01283 214 231 or via email at s.wildsmith@timms-law.com.