Canadian Health Network

Send this to a friend Print-friendly version Financial abuse of older adults What the law says about … financial/material abuse Elder abuse: the hidden crime Prevention suggestions for older adults Identity theft Past Articles Subscribe to our Healthlink newsletter

Financial abuse is one of the most common forms of abuse reported by older adults. A senior who is financially abused is often also subject to other types of abuse, such as physical, emotional or sexual abuse. Most financial abuse of older adults is by members of their own families. Older adults may also be the victims of financial fraud, specifically targeted at seniors.

The financial exploitation of older adults is under reported, as with many forms of abuse.

Having enough money is a determining factor of general health. The loss of level of income that can be the result of financial abuse is stressful, and may affect some seniors' ability to deal with the difficulties in their lives, particularly those who are already living on low incomes.

Financial abuse can make it more difficult for an older person to afford to maintain a healthy lifestyle, with good nutrition and physical activity. It may also compromise his or her ability to live independently. Other consequences include mental health problems, such as increased anxiety or depression and a loss of self-worth.

Older adults are at a higher risk of financial abuse, than the general population.

Seniors are especially at risk if they:

• live with someone who is financially dependent on them ( e.g. adult son or daughter)
• live with someone on whom they are physically or financially dependent
• have a past history of abuse
• are poor
• are disabled
• are socially isolated, with little contact with friends or the community.

Financial abuse of seniors is most often done by their spouse or partner, a family member or caregiver.

It is hard to imagine why family members would abuse their loved ones. Research has identified some factors that are common in all forms of abuse. While the presence of these factors does not mean that abuse will occur, abusers often have a:

• history of drug or alcohol abuse
• history of mental illness
• sense of entitlement to a family members money or assets
• high level of stress.

Health professionals, neighbours and friends may mistake signs of abuse of seniors as symptoms of senility or disease, and as a result, may not report the abuse.

Older adults who are being victimized may not report abuse, including financial abuse, because of:

• feelings of guilt, shame or fear
• dependence on their abuser
• a wish to continue their relationship with the abuser, especially if the abuser is a family member
• physical or cognitive inability to report the abuse
• a belief that the police or other authorities will be unable to help them
• fear that the abuse will worsen if the abuser finds out they have been reported.

Older adults may also lose money and assets through telephone fraud, identity theft and other illegal schemes. In these cases, it is a stranger or a casual acquaintance who commits the crime.

Fraud—if it sounds too-good-to-be-true, it probably is!

A company called me last week and told me I'd won a trip worth $2000.00, but I had to give them some money right away to secure it. I'd love to go on a trip, but should they have asked for my credit card number?

Everyone can be a victim of a fraud or get-rich-quick scheme. Seniors, however, are most at risk. PhoneBusters, a Canadian anti-fraud centre, estimates that 40% of the money lost to bogus prize and lottery telephone scams was from people aged 60 and over.

Seniors are the preferred target for this type of fraud because the people who run them believe that older adults:

• have more disposable income
• are more trusting of and polite to strangers
• have little social contact, and as a result are more willing to talk on the phone.

Protect yourself from fraud!

Be very wary about information that you give out over the telephone. Some warning signs of fraud are when the person contacting you:

• asks for your credit card number
• wants you to pay for a prize they say you have already won
• pressures you into deciding quickly
• seems extremely excited about the opportunity they are offering
• is overly friendly
• wants to give you money in exchange for letting them use your bank account to transfer a large amount of money.

One anti-fraud program that is helping older adults in Canada is the ABCs of Fraud. It trains older adults to be tough targets for frauds and scams. It is an interactive presentation given by older adult volunteers who have been trained in preventing fraud. The program is for both older adults and their caregivers, and is available in cities across Canada.

Identity theft—don't let it happen to you!

Last week, I got a credit bill for a larger amount than I remember spending. There were two purchases on it made in a city I've never even been to! I think someone stole my credit card number, but I don't know how they could have done that!

Identity theft is one of the fastest growing crimes in North America and is another way older adults, and others, have money stolen from them. Identity theft occurs when someone uses personal information like your Social Insurance Number or credit card number without your knowledge.

Protect yourself from identity theft

• Shred papers that contain personal information like credit card and social insurance numbers.
• Know when your bills usually come, and contact the company if they don't arrive.
• Never use birthdays, names or SIN numbers for your passwords and PIN numbers.
• Only give personal information over the phone, mail or internet when you have contacted the company or organization first.
• Make sure your mailbox is secure.

Here are some specific steps that everyone can take to prevent the financial abuse of older adults:

• Know that you do not deserve the abuse.
• Keep your money in a bank, not a home.
• Open your own mail and, where possible, do your own banking.
• Use direct deposit instead of having someone deposit your cheques.
• Plan for your future. Make a will and keep it up to date.
• Ask someone you trust to look at all financial papers before you sign them.
• Appoint a trusted relative or friend to make decisions for you if you become unable to do that for yourself.
• Know the signs of financial abuse.

If financial abuse is suspected you may...

• Know where you can to go for help in an emergency.
• Talk to staff at your bank or credit union.
• Revoke power of attorney.
• Close joint bank accounts.

• Stay in contact with older adults and talk to them about signs of financial abuse.
• Talk to the older adults in your life about planning for the future, making a will, etc.
• Listen and be supportive and avoid making judgements.

If financial abuse is suspected you may...

• Approach the older adult when he or she is alone, and not when the suspected abuser is present.
• Help seniors locate resources in your area through the Directory of Services and Programs Addressing the Needs of Older Adult Victims of Violence in Canada.

• Work with groups of older adults to prevent and deal with financial abuse.
• Develop advocacy programs for older adults that increase awareness of financial abuse.

Although there may not be any physical scars from the financial abuse of seniors, the effects can be as devastating as with any other form of abuse. By raising awareness about financial abuse for seniors, their caregivers and the wider community, we are taking the first step toward prevention.