Financial elder abuse increased due to the pandemic, how can you protect yourself?

Elder abuse was already an issue across the world, however, the pandemic has exacerbated the issue – with more and more people feeling a financial and emotional burden over the last three years.

It is estimated that one in six older people have experienced some form of elder abuse over the last 12 months and financial abuse is sitting around 2 percent of reported elder abuse cases in Australia.

However, Geoff Rowe, Chief Executive Officer (CEO) of Aged and Disability Advocacy Australia (ADA Australia), says it is likely that financial abuse is a lot more pervasive in the community than people realise and that the financial abuse data is not reflective of what ADA sees on the ground.

Financial elder abuse increased due to the pandemic

Why is COVID-19 making financial abuse worse?

Mr Rowe says that COVID-19 has exacerbated a lot of issues for people and increased financial pressures, which may be passed on to older people.

“Older people I think, particularly throughout the pandemic, have been seen as not the highest priority group despite being the most vulnerable group,” explains Mr Rowe.

“What happens behind closed doors without the normal checks and balances is another contributing factor.

“With lockdowns, all the financial pressures on families, [people] lean more on the bank of mum or dad.”

Mr Rowe adds that a big problem with elder abuse, in general, is that older people are reluctant to seek help or report perpetrators because this abuse is often carried out by people they love.

ADA Australia often sees older people blame themselves for the actions of their children, particularly in the case of financial misuse.

Older people have been disconnected from their community and supports more broadly, explains Mr Rowe, which is allowing financial abuse to happen more so than in pre-pandemic times.

Another reason for the financial abuse of elderly people is early inheritance syndrome.

Mr Rowe says that sometimes family members may start thinking that because they need the money now and the older person “doesn’t need it” they can start accessing their inheritance “right here, right now”.

Signs of financial abuse

Spotting financial abuse can be difficult, especially if you are worried about upsetting family members or the victim.

Things that can signal financial abuse include:

  • An older person not being allowed to access their own money

  • A person no longer being able to access any financial accounts

  • Bills are not being paid regularly or often paid late – either by the Enduring Power of Attorney (EPOA) or the older person

  • Expensive or important items are going missing (like your grandmother’s rings or family jewels) or even expensive furniture going missing from your or your older loved one’s home

  • Changed behaviours, like an older person worrying about affording something they do regularly, such as a morning coffee at their favourite cafe

  • Avoiding going to medical appointments or paying for essential items

  • The older person becomes defensive if you ask them about giving money or large gifts to other family members

  • Random or unexpected changes to the person’s banking or important documents

  • Sudden property transfers or selling their house, where previously the older person has indicated they wanted to remain in their home

Another concern for ADA is the misuse of Enduring Power of Attorney (EPOA) powers by family or close friends.

EPOA’s can give certain powers to family members that are meant to assist older people who find certain decisions or tasks difficult. But Mr Rowe says this very system that is meant to protect the vulnerable is also being used incorrectly – whether by accident or not.

You can learn more about financial abuse and other types of abuse in our article, ‘The signs of elder abuse‘.

Where to go for help

If you are concerned you may be experiencing financial abuse, contact an advocacy service or elder abuse service to get the help you need.

An advocacy service can help you understand what your rights are, negotiate on your behalf or empower you self-advocate, set out a plan to help reduce your stress, and give you the right phone numbers for the appropriate supports.

The Older Persons Advocacy Network (OPAN) can help you understand your rights and direct you to the best support services for your situation. You can contact OPAN on 1800 700 600.

If you want to talk to a specific elder abuse service that can provide you with information or advice, contact ELDERHelp on 1800 353 374 and you will be directed to the relevant State or Territory service.

If it is an emergency, contact the police on Triple 000.

You can learn more about elder abuse in our article, ‘Recognise the signs of elder abuse and how to prevent it‘.

*Case studies provided by ADA Australia

This article was originally published on
. Reproduced with permission of DPS Publishing.

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Interprac Financial Planning Pty Ltd 

Darryl Jopling

Senior Adviser

I have worked in the financial services industry since 1982 and as a Financial Adviser since 1999.

I have worked for large Financial Planning businesses, Membership based organisations and looked after the financial planning needs of clients within an Accounting Practice before starting my own business.

I am married, have 4 older children and a grandson and I am keen golfer with mixed results like many .

I have been through many of the strategies I talk with clients about myself and with my family.

I have been through the journey of seeing my parents move into Aged care and negotiated the difficulties and pitfalls of understanding the system for them and this gives me an excellent insight into what is required to assist families at this difficult time.

In a previous roll I used to run retirement seminars looking at Centrelink and Retirement Incomes and how to make these work for you. I have helped many of my clients with Aged Care advice when their parents needed to move into Nursing Homes. For many clients I assist them with superannuation, building wealth and protecting their loved ones with insurance.

I am supported by his, Licensee, Interprac Financial Planning’s in-house resources and ongoing technical, systems and training.

I am committed to understanding your needs and identifying strategies and products to help you achieve your goals.

My guiding principle as an Adviser is to design plans which help to provide my clients with clarity of purpose and the opportunity to build a solid financial foundation.
I will take the time to listen, explain things clearly and keep you informed throughout the advice process.

My experience is complemented by professional qualifications including:

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  • Diploma of Financial Planning

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