Warning signs of financial elder abuse

Understanding what financial elder abuse can look like means you will be better able to safeguard your money and property, or that of someone close to you. Often, there are warning signs that something may not be right, and taking notice and deciding to intervene could be all that’s needed.

Of course, everything may turn out to be fine and above board – but if it doesn’t, you’ll be glad you spoke up.

What to look out for

Whether you’re supporting someone else or keeping yourself safe, here are three warning signs to watch for, along with ideas of what might be happening and tips on what to do.

Example 1: Sudden changes in the way the banking is done

What to look for:

• Money being withdrawn more often than usual, or in larger amounts

• Big sums of money being transferred overseas or to another person’s account

• Unusual transactions appearing after someone is given someone authority to access the account

What might be happening:

While changes like these might simply mean new or larger expenses, they could also be signs of a fraud or scam or that someone is influencing the person’s spending decisions for their own gain.

What you can do:

• Ask the bank to investigate the transactions and identify where the money is going

• Check receipts, bills and correspondence for possible explanations

• Talk to the person who was given account access to find out what they know about it.

Example 2: Feeling surprised or confused about your accounts

What to look for:

• Withdrawals from accounts that don’t make sense

• Language barriers making it hard to understand things

• Bank statements going missing or causing confusion

What might be happening:

This could mean that the person’s ability to understand information has decreased a little, but it could also indicate that someone’s interfering in their affairs or taking advantage of language gaps. For example, they could be transacting on the account without permission or might have changed the address on the account so the person can’t keep up to date.

What you can do:

• Contact the bank to talk through concerns about strange transactions or missing information.

• Ask for an interpreter at the bank or take along someone whose English is stronger.

• Let bank staff know about hearing or other impediments.

• Contact the service providers for copies of any missing statements or unpaid bills.

Example 3: Feeling pressured to make uncomfortable financial decisions

What to look for:

• Feelings of being intimidated or controlled by someone and having to do what they say

• Someone without financial authority accompanying the person to the bank to make a withdrawal

• Someone else filling out withdrawal forms (or other documents)

Feelings of pressure and lack of control could indicate that power or threats are being used to force the person to hand over money to them. It’s possible that psychological abuse may also be happening, simultaneously.

What you can do:

• Ask to speak to bank staff alone about your concerns

• Seek advice from one of the elder abuse helplines or seniors’ advocacy services (see the end of this article for a list)

• Contact the police if the feelings of fear are severe

Top tips for preventing financial abuse

• You can help yourself and others by raising your awareness of the warning signs, seeking support or assistance if you see anything troubling, and pausing a financial transaction if something ‘doesn’t feel right’.

• If other people express concern that you might be experiencing financial abuse, listen to them – they may be right to be worried.

• If you are concerned about possible abuse of your trust or finances, let your bank know. Your local bank manager can speak with you privately if you would like.

• Be sure about any transaction you want to make: bank staff have an obligation to respect your privacy and are required to honour an authorised transaction if you insist that they proceed.

Brian’s story: the bank is your ally

At 70 years old Brian was struggling with health issues, including hearing loss. He found trips to the shops and the bank exhausting, so his son Wayne often did the shopping for him and paid his bills over the phone. Wayne suggested that he help his father set up an online bank account and teach him how to use it. As Brian was not good with technology, he asked Wayne to do it all for him, and only occasionally looked at the account online.

Brian continued to receive his bank statements by post. After a while, he noticed some payments that he did not recognise. He looked through all his receipts but could not find any explanation for the payments, so he rang his bank. Upon investigation, the bank identified these amounts as having been spent on Wayne’s utilities and shopping accounts.

Brian asked Wayne about the transactions and learned that he had started to use the account to pay for small bills when money was tight. He had intended to pay the money back but was always caught short each month. Apologetic and embarrassed, Wayne promised to reimburse Brian from his next pay.

Brian then acted on his bank’s advice and sat down with their staff to discuss safer ways of handling his banking needs, such as setting up autopay on regular bills.

• Ask your bank for advice on strategies for managing your banking and accounts. They’re the experts, and they will be glad to help you.

• Always monitor your own accounts and transactions, even if someone else has your authority to manage them for you. Staying involved helps you stay safe.

Maddy’s story: intervention leads to prevention

Maddy, who was 65, was accompanied to the bank by her young next-door neighbour, Kay, to transfer her a large amount of money. When the bank teller queried the reason for the transfer, Maddy confidently told him, ‘Kay has been a true friend and a life saver on many occasions.’

Maddy believed she had come into the bank to help a dear friend with a huge problem: Kay was getting divorced and needed $260,000 to buy out her ex-husband so that she could remain living in their family home. Kay had promised to pay back the money with an inheritance from her very elderly father soon.

The bank teller was very concerned, as no legal documents for the loan had been established and Maddy did not appear to have sought advice from anyone. At the recommendation of the branch manager, the teller politely suggested putting the transaction on hold for 24 hours until Maddy discussed the loan with family, an accountant or a solicitor.

Maddy was upset and embarrassed by the teller’s request, but reluctantly agreed. Kay angrily demanded that the bank honour the transaction but, as she had no formal authority over the account (such as a power of attorney), the bank were not obliged to comply. The transaction was put on hold.

When Maddy complained to her family members about the bank’s refusal of the transfer, they expressed relief that it had not gone through. After discussing the planned loan with her family, Maddy realised what could have gone wrong and was grateful that the bank had saved her from potentially losing all her savings.

• Watch for people’s reactions – like Kay’s anger – when you don’t act as they want.

• Always discuss big financial decisions with family or other people you trust before going ahead.

George’s story: checking out a warning sign

Maryanne, daughter of 87-year-old George, accompanied her father to the bank to request a change of address for his letters and to set up online banking. She presented the bank with a power of attorney for operating George’s bank accounts. Maryanne led the meeting, while George remained very quiet throughout.

Soon after their visit, five transfers of $10,000 each were made from George’s account to five other accounts. The bank rang George to make sure he knew about the transfers. At first, he seemed a bit confused and didn’t understand what the bank officer was talking about. He then mentioned that he was ‘a bit deaf’ and would need the bank officer to speak louder.

George explained that Maryanne had suggested he try to minimise his tax bills by making a gift – an early inheritance – to each of his five children. On hearing this, the employee gently questioned him further.

George said Maryanne was regularly keeping him informed about his accounts. He explained that he had asked her to be his attorney and that when she accepted, she insisted they have monthly meetings to go through his bank statements, invoices and incoming bills. He also mentioned that he found it difficult to write these days, so he had asked Maryanne to fill in any necessary forms.

The bank was satisfied that Maryanne was diligently looking after George’s interests and that she was acting honestly and ethically in her dealings with both her father and the bank.

• It’s better to question a possible warning sign and find nothing wrong than to ignore it. George’s bank asking about Maryanne’s role caused no harm.

• Staying actively and regularly involved with your financial management keeps you informed and able to spot anything going wrong.

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Acknowledgement

This article is from the Safe & Savvy guide, a publication that was developed by the Commonwealth Bank of Australia (CommBank) Customer Advocate, together with a large range of community and academic experts.