Are you or do you know a senior who may be at risk of financial abuse?
As people age, they become more dependent on others, making them vulnerable to frauds, scams and exploitation. They are often the target of investment frauds and scams because they are more likely to have built up assets such as retirement savings and property and a steady income through pensions, savings or the Canada Pension Plan. There are steps you can take to identify and prevent senior financial abuse.
Financial abuse of seniors is the misuse of an older adult's money or property. It can include outright theft, abuse of power of attorney privileges, misuse of a senior’s finances, and targeting seniors to invest in unsuitable or fraudulent investment products. It may be by a relative or person in a position of trust. Poor financial or investment decisions are not necessarily financial abuse. Common forms of financial abuse include:
- Forcing someone to sign over power of attorney or control of their assets
- Forcing someone to sell their house or change their written will
- Depleting savings without the account holder’s knowledge
- Spending savings for items that do not benefit the account owner
- Withholding someone’s funds, pension cheque or other income
- Pressuring a person to invest in unsuitable financial or investment products
Seniors may not feel at risk because they don’t have access to large sums of money, but financial fraud and abuse generally involve small amounts, usually less than $10,000. The repeated theft of smaller amounts can add up. Financial exploitation can be devastating. And it can cause more than money problems; victims may lose trust in others, become socially isolated, and show signs of health problems such as depression and anxiety.
Financial abuse is called “the invisible crime” because it often goes unidentified and unreported. Seniors may not report it because they fear retaliation or a loss of support or independence. They may also feel shame or embarrassment.
Sometimes caregivers mismanage the funds of those they are caring for or improperly handle their finances because they lack adequate knowledge about financial matters or responsibilities. The absence of adequate caregiver support can also lead to financial abuse, as the senior looks for outside support to assist with their financial affairs and may rely on individuals not well known to them or those who may not be well-intended.
Signs of Financial Abuse
If you notice any of the following behaviours in a loved one, he or she may already be a victim of financial exploitation:
- Someone that you may not know or trust asking for access to your loved one’s bank accounts or to be your loved one’s power of attorney
- Your loved one feeling pressure to give money when they know they should not
- Your loved one not fully understanding where their money is going or experiencing unusual banking transactions
- Suddenly changing their will
- Unusual fear of or sudden change in feelings about a particular person
- Change in appearance or noticeably poor hygiene
- Being accompanied by an overly protective caregiver
- Change in ability to perform daily living activities, including self-care, day-to-day finances, or medication management
- Discrepancy between standard of living and financial assets
Concerns about investment fraud can be reported to the Financial and Consumer Services Commission (FCNB) by calling 1-866-933-2222 or using its online form. As the province’s financial and consumer services regulator, the FCNB is responsible for enforcing legislation that regulates securities, insurance, pensions, credit unions, trust and loan companies, cooperatives, and more. To visit the FCNB website, click here.
If you suspect someone is being financially exploited and that it is accompanied by another form of abuse, please contact Social Development at 1-833-733-7835 or call your local police or RCMP. If you believe a senior is in immediate danger, call 911.
How to Protect Seniors From Financial Abuse
FCNB has a number of online resources to help seniors, their families, and caregivers identify the signs and risks of financial abuse and protect them from exploitation. These include:
- The Record Keeper: A fillable document where you can record important personal, financial and legal information. Click here to download.
- Understanding the Power of Attorney: A user-friendly guide to acting on authority granted under a power of attorney for financial matters. It explains what power of attorney means, the responsibilities and obligations, what you do not have the right to do, and how you can best fulfill this role. Click here to download.
- Sandwich Generation: Are you Caught in the Middle?: This two-pager is for anyone responsible for the care and support of dependent children and older family members. It has tips to help you provide a more secure financial future for yourself and your loved ones. Click here to download.
- How to Recognize Financial Decline in Seniors: This webpage has a wealth of information on spotting the signs of financial decline in yourself or an aged adult. It also has details on how to broach the subject of finances with your aging relatives. Click here to visit.
- Protecting Seniors From Fraud and Financial Abuse During COVID-19: The pandemic has made aged adults even more vulnerable to scams, fraud and other kinds of financial exploitation. Click here to find out more. And visit the Social Supports NB COVID-19 webpage, which has guides for seniors and their caregivers on how to stay well during this challenging time.
