When most people think about elder abuse, they picture physical neglect or mistreatment. What many don’t realise is that financial abuse of older Australians is one of the most common forms of abuse experienced.
It can happen gradually, often at the hands of someone the older person trusts. A son helping with banking. A daughter managing bills. A grandchild with access to online accounts. A neighbour offering assistance. In many cases, what begins as help can evolve into control.
At Trusted Aged Care Services, we often see financial abuse emerge during times of vulnerability, particularly when an older person experiences declining health, loss of capacity, or a move into aged care.
What Is Financial Abuse?
Financial abuse occurs when someone improperly uses or controls another person’s money, assets or financial resources for their own benefit.
It may involve:
- Taking money without permission
- Pressuring someone to change their Will
- Misusing an Enduring Power of Attorney
- Coercing an older person into signing documents
- Forcing the sale of property
- Preventing access to bank accounts
- Using credit cards without authority
- Manipulating someone into making gifts or loans
Financial abuse is often hidden because the victim may be embarrassed, dependent on the abuser, fearful of losing family relationships, or unaware that abuse is occurring.
Why Aged Care Can Increase Risk
The transition into aged care often requires significant financial decisions.
Families may need to decide whether to:
- Sell or retain the family home
- Pay a Refundable Accommodation Deposit (RAD)
- Manage investments
- Complete Centrelink paperwork
- Access bank accounts
- Sign aged care agreements
When large sums of money and important decisions are involved, opportunities for abuse can arise.
This is particularly concerning when an older person has already begun experiencing cognitive decline or diminished decision-making capacity.
Common Warning Signs
While every situation is different, some warning signs may indicate a problem.
These include:
- Sudden changes to Wills or estate plans
- New joint bank accounts without clear explanation
- Unusual withdrawals or transfers
- Missing financial records
- Unpaid bills despite adequate funds
- Pressure to transfer property
- Family members restricting access to information
- Isolation from trusted friends, advisers or relatives
- An attorney acting without transparency
One warning sign alone does not necessarily indicate abuse, but multiple concerns should never be ignored.
Powers of Attorney Are Powerful Documents
An Enduring Power of Attorney is one of the most important legal documents a person can sign.
It allows someone else to make decisions on your behalf if you lose capacity.
Most attorneys act honestly and diligently. However, when things go wrong, the consequences can be devastating.
Before appointing an attorney, ask:
- Is this person trustworthy?
- Are they financially responsible?
- Can they manage family pressures?
- Will they act in my best interests?
- Would a joint appointment provide additional protection?
The right attorney can protect your future. The wrong attorney can place it at risk.
How Families Can Protect Loved Ones
There are practical steps families can take to reduce risk.
Consider:
- Reviewing Wills and Powers of Attorney regularly
- Keeping financial records organised
- Maintaining independent professional advice
- Having more than one trusted person involved in major decisions
- Encouraging open family communication
- Documenting important financial transactions
- Seeking legal advice when concerns arise
The earlier concerns are identified, the easier they are often to address.
Trust Your Instincts
If something doesn’t feel right, it is worth asking questions.
Many cases of financial abuse are uncovered because a family member, friend, adviser or care provider noticed small inconsistencies and chose not to ignore them.
Protecting older Australians is not just about preserving wealth.
It is about preserving dignity, independence and the right to make decisions free from pressure, coercion and exploitation.
Because everyone deserves to feel safe, respected and protected throughout their later years.
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