It usually starts small. A son offers to help Dad with his online banking because his eyesight is going. A few months later Dad notices payments he doesn’t recognise. When he asks, the son is embarrassed: money was tight, he meant to pay it back. That’s a real story from the elder abuse resource site Compass, and it ended well because the father checked his statements and spoke up.
Many cases don’t end well. Elder financial abuse is the theft or misuse of an older person’s money, property or assets, and the uncomfortable truth is that it’s most often done by someone the person knows and trusts. Here’s what it looks like, the signs to watch for, and exactly who to call.
How common is it?
The best Australian data comes from the National Elder Abuse Prevalence Study by the Australian Institute of Family Studies, released in 2021. It surveyed people aged 65 and over living in the community (not in residential care) and found:
- about one in six older Australians (14.8%) reported experiencing some form of elder abuse in the previous 12 months
- about 2% reported financial abuse in that period
- among those who experienced financial abuse, the most common form was being pressured into giving or lending money, possessions or property (41.5%), and just over a third (34%) reported behaviour amounting to theft
Two per cent may sound small. Across Australia’s millions of over-65s, it’s a lot of people. And because the study excluded people in aged care and people with cognitive impairment, who are often more vulnerable, the true figure is likely higher.
Who does it?
Mostly people close to home. According to Compass’s summary of the AIFS study, adult children were responsible for around a third of financial abuse cases. Friends, neighbours and acquaintances also feature heavily, and men made up more than two-thirds of financial abuse perpetrators.
That’s what makes it so hard. The person doing it may also be the person helping with the shopping, the medical appointments and the grandkids. Many older people stay quiet because they don’t want to get a family member into trouble or lose contact.
Common forms of financial abuse
Compass lists the most common types, drawn from the banking industry’s Safe & Savvy guide. These are the ones families most need to know about:
- Power of attorney misuse. An attorney uses their authority over your finances to take money or assets for themselves or others. This is one of the most serious forms because it’s hard to detect once you’ve lost capacity. Our guide to enduring powers of attorney explains how to choose wisely and build in safeguards.
- “Inheritance impatience”. Adult children who feel entitled to a parent’s assets now, rather than later. It can look like pressure to “give it to us now to avoid tax” or simply helping themselves.
- Pressure to sign things. Being pushed to transfer property, add someone to a title, or change a will.
- Informal family agreements gone wrong. Selling your home and putting the money into a child’s house with nothing in writing. If the relationship sours, you can be left with no home and no money. Our article on granny flat arrangements covers how to do this safely.
- Misusing access to your money. Someone with legitimate access, like a carer doing the shopping, using it for their own purposes.
- Guarantor risk. Guaranteeing a child’s loan, which can put your own home at risk even with no bad intent.
- Emotional leverage. For example, access to grandchildren being made conditional on a loan.
- Scams and fraud by strangers. We cover these in detail in scams targeting older Australians.
The warning signs
None of these prove abuse on their own, but each is worth a second look, whether it’s your own accounts or those of a parent or friend.
Money and paperwork
- money being withdrawn more often than usual, or in larger amounts
- large transfers to another person’s account or overseas
- unusual transactions appearing soon after someone is given access to an account
- bank statements going missing, or the mailing address on an account being changed
- bills going unpaid when there should be plenty of money
- new names added to bank accounts, cards or property titles
- a will or power of attorney suddenly changed, especially in favour of a new “friend” or one family member
Behaviour
- feeling confused or surprised by what’s in the accounts
- feeling intimidated, controlled or pressured to make financial decisions
- someone without financial authority coming along to the bank and doing the talking, or filling in withdrawal forms
- a family member or carer becoming reluctant to let others visit or speak to the person alone
- the older person seeming anxious, withdrawn or fearful when money comes up
One trap to avoid: assuming it’s “just memory problems”. Confusion about money can be an early sign of cognitive decline. It can also be a sign that someone is taking advantage of that decline. Both deserve attention.
What to do if you’re worried
If it’s happening to you
- Talk to your bank. Ask to speak to a staff member privately. Banks can investigate transactions, change access, put holds on unusual activity and help you set up safer arrangements such as automatic bill payments.
- Keep monitoring your own accounts, even if someone else has authority to manage them.
- Call 1800ELDERHelp (1800 353 374). It’s free, confidential, and redirects you to the specialist service in your state or territory. It isn’t a 24-hour line, and hours vary by state.
- Get legal advice before signing anything to do with your home, your will or a power of attorney. Community legal centres and seniors’ rights services can help for free or at low cost.
- If you feel unsafe, call the police. In an emergency, call 000.
If you’re worried about someone else
Raise it gently, ideally when the person is on their own. Listen more than you talk. Remember an adult with capacity has the right to make their own decisions, including ones you think are unwise. Your job is to make sure they know their options and that someone is on their side. The state helplines also take calls from worried family, friends and neighbours.
Who to call
| Service | Phone |
|---|---|
| National: 1800ELDERHelp (connects you to your state’s service) | 1800 353 374 |
| NSW: Ageing and Disability Abuse Helpline | 1800 628 221 |
| Victoria: Seniors Rights Victoria helpline | 1300 368 821 |
| Queensland: Elder Abuse Prevention Unit | 1300 651 192 (or 07 3867 2525 from outside Qld) |
| Western Australia: Advocare elder abuse helpline | 1300 724 679 |
| South Australia: Adult Safeguarding Unit | 1800 372 310 |
| Tasmania, ACT and NT | Call 1800 353 374 to be connected locally |
| Police (non-emergency) | Your local police station |
| Emergency | 000 |
Most of these are not crisis or 24-hour services, so check the operating hours on the service’s website.
Protecting yourself before anything goes wrong
The best defence is setting things up well while you’re fit and capable:
- choose your enduring attorney carefully, consider appointing two who must act jointly, and ask them to keep records
- put any family money arrangement (loans, granny flats, help with a deposit) in writing with independent legal advice
- keep your own bank access and keep looking at your statements
- don’t sign anything you haven’t read or don’t understand, and never sign under time pressure
- stay connected. Isolation is one of the biggest risk factors, and people with a wide circle of friends and activities are harder to exploit.
Our view: it’s worth having this conversation with your family openly, before anyone needs help. It’s much easier to agree on how money will be handled when everyone is calm and well, rather than in the middle of a health crisis.
FAQ
Is elder financial abuse a crime?
Some of it is, such as theft and fraud, and the police can investigate. But Compass notes that much financial abuse isn’t technically illegal, such as pressuring someone into a loan. Specialist elder abuse services can help with both kinds.
What is the 1800ELDERHelp number?
1800 353 374. It’s a free national number that connects you to the elder abuse information and support service in your state or territory. It isn’t a 24-hour line.
Can I report concerns about someone else anonymously?
Many services allow it. For example, South Australia’s Adult Safeguarding Unit says anyone can call and you can remain anonymous. Ask the service in your state when you call.
What can I do if an attorney is misusing a power of attorney?
Contact your state’s elder abuse service, the Public Advocate or Public Guardian, or the guardianship tribunal in your state, which can review the attorney’s conduct. If money has been stolen, report it to police.
This article is general information only and isn’t legal or financial advice. If you or someone you know is in immediate danger, call 000. Phone numbers and service hours can change, so check the official websites linked above.
