Financial abuse and economic crime are both forms of financial exploitation.
Financial abuse is the unethical or illegal misuse of the money, property, or other assets of an older adult. This can include placing inappropriate pressure on an older person in order to get access to her or his assets. Financial abuse is sometimes referred to as financial or material exploitation.
Financial abuse is usually committed by close family members, professional (paid) care providers or friends. In the majority of cases that we know about, the abuser is someone the older person knows.
2. What causes financial exploitation?
Sometimes financial abuse stems from a sense of entitlement adult children or grandchildren (or other family members) feel they have to the assets of the older person. It is important for seniors to know that their money is their money. They are under no obligation to give it to family members (or anyone else who demands it).
Many times, family or friends act in a way that they think is helpful to the senior but in fact reduces the senior’s ability to manage his or her own affairs and access his or her own money or assets. Not every abuser means to cause harm even though the impact of his or her actions is the same. In these cases, it is important for seniors to make their wishes known and to assert their independence.
3. What is the impact of financial exploitation?
Financial exploitation can have far reaching effects. Seniors can be devastated by the loss of even small amounts of money, and may even lose their ability to live on their own. In the case of financial abuse, what is equally devastating is the loss of trust in someone they depended upon.
The stress of financial abuse and economic crime can have immediate and long lasting physical and emotional effect. This can include depression and it can even lead to death from health problems or suicide.
4. How common is financial abuse?
(The information in this section is taken from the National Clearinghouse on Family Violence 1998 publication Financial Abuse of Older Adults.)
A 1998 British Columbia survey found that 8 % of older adults had been financially abused, with the average loss being $20,000 each.
Other Canadian studies undertaken between 1985 and 1993 indicate that financial abuse is the most commonly reported form of abuse experienced by older people.
Do statistics tell the full story?It is impossible to know exactly how many Canadian seniors experience financial abuse for several reasons: financial abuse is not defined the same way across Canada; older adults may not know when it happens; and there are few studies on financial abuse. The main reason we do not have accurate information is that financial abuse, like other forms of abuse, is under-reported.
As a society we need to recognize and report abuse and understand how to respond to unacceptable behavior.
5. Why is financial abuse not always reported?
The reasons for not reporting financial abuse are complex.
Older adults who experience financial abuse may not report because they are ashamed, embarrassed, or are afraid there will be negative consequences from the abuser if they do report. The older person may be dependent on the abuser for assistance and could be afraid of being neglected or left alone by the abuser. Many older people fear having to live in a nursing home and believe that this will happen if they lose their primary support person, even if he or she is abusing them. They may feel too proud to report abuse, and think that reporting would reveal weakness. They may not want to get the abuser into trouble.
Relationships with abusers are complex. There can be unresolved emotions and feelings of resentment, guilt and obligation. For example, an older adult who is financially abused by a dependent adult child may feel an obligation to provide support and protection to her or him. Combined with an abuser’s misguided sense of entitlement, this dynamic can lead to abuse.
Individuals who witness or suspect abuse may not report because they are unaware of what to do. They may lack knowledge about the signs and symptoms of abuse, or because they do not want to be involved.
6. Why is it important to report financial exploitation?
Reporting can help older adults who have experienced financial abuse. It can open the door for action that addresses the abuse. It can also help the older adult to know that they are not alone and are not to blame.
Reporting helps make financial abuse a ‘serious’ issue. The more we know about and understand it, the more can be done to prevent financial abuse and economic crime. For example, media stories on financial abuse and economic crime can help the public to understand the issue and take it seriously.
To report economic crime or suspected financial abuse of any kind, call your local police service.
For economic crime and consumer fraud issues, you can also report scams at: www.phonebusters.com or call: 1-888-495-8501.
7. What are some of the signs of financial exploitation?
- unauthorized withdrawal of the older person’s funds using her or his ATM card;
- abrupt changes in a will or other financial documents;
- unexplained purchases or abuse of funds by persons appointed in a Power of Attorney;
- unexplained disappearance of funds or valuable possessions;
- unexplained sudden transfer of assets to a family member or someone outside the family;
- discovery of an older person’s signature being forged for financial transactions or for the titles of her or his possessions;
Financial abuse can be difficult to recognize.
8. Why are seniors more vulnerable to financial exploitation?
When financial abuse is committed by a family member or friend, the dynamics of the relationship are often complicated and can reflect old patterns of behaviour. Financial abuse often goes hand in hand with psychological abuse (manipulation, intimidation, harassment).
The older adult and the abuser, who is often an adult child or grandchild, may be dependent on each other. The older person may be dependent on the abuser for emotional support, assistance with daily living, or assistance with conducting financial business. The senior, therefore, may be reluctant to report abuse, thinking that no one else cares about them or is able to help or support them. The senior may have strong feelings for the abuser and not want him or her to be ‘hurt’ or get into trouble by making a report. The older person may also fear retaliation.
The abuser may also suffer from stress, unemployment and chronic psychological or personal substance abuse or other addictions. The abuser may also have a false sense of entitlement to the older person’s money or property. This type of abuse can involve large sums of money, but can sometimes occur as a pattern of escalating abuses. Abuse often gets worse over time.
It is easy to unwittingly provide information that helps the offender carry out the fraud. It is essential to have the necessary information to protect ourselves and prevent fraud, financial abuse and exploitation.
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