Did you know that 4-10% of older Manitobans will experience financial abuse as they age? This statistic may be an underrepresentation of reality—it’s estimated that for every 1 reported case of financial elder abuse, 4 more go unreported.
On World Elder Abuse Awareness Day, we want to help change that.
“This day brings awareness to the fact that older adults can be (and often are) taken advantage of,” says Nicole Prokoppa, PMO Business Analyst at Cambrian.
“We aim to provide people with information to help protect themselves and others.”
In this article, we’re covering the common signs of elder abuse and what you can do to keep your family safe:
Financial abuse of older adults is when another person manipulates, blackmails, or deceives an older adult to steal their money or assets.
Unfortunately, the most common perpetrators of this crime are those who have a personal relationship with the older adult.
“Oftentimes, the family members who are part of the person’s support system become the abusers,” says Nicole.
A few factors that put someone at risk for abuse include:
“Different levels of abuse can take place,” explains Nicole. “For example, a caretaker may threaten to withhold services unless they are paid a certain amount of money. Or a family member may access their relative’s accounts to take out money directly.”
The most common types of financial elder abuse include:
One common scam that targets older adults is called the “grandparent” or “grandchild” scam.
The scammer will call you and impersonate a family member (often a grandchild). They’ll tell you they’re in imminent danger and require money ASAP.
They may pass the phone to another person, who will pretend to be a police officer or lawyer to “add credibility” to the story. Then, the scammer will ask you to wire them money directly from your bank account or send gift cards—because these payment methods are more difficult (if not impossible) to reverse.
With the rise of Artificial Intelligence (AI), a scammer can even impersonate the voice of your loved one, making it harder to detect what’s real and what’s not.
If you receive a suspicious call from someone who claims to be your loved one, hang up the phone and call the person directly to verify their identity.
Imagine that you lent your credit card to a friend so they could purchase groceries for you.
Once they visit the store, they realize they need a few things for their pantry as well. And because they already have your card, they might use it to buy those items for themselves.
This crime of opportunity is unfortunately common when older adults rely on family members for assistance with everyday purchases.
An adult child may feel entitled to spend their parent’s money because they’ll inherit it one day. They might think: “I’ll inherit the money anyway, so why not spend it now?”
If the person managing your finances suddenly needs money, they could take advantage of your savings or good credit to cover their bills.
The person may be facing financial hardships due to addiction, job loss, unexpected expenses, or a divorce.
An older adult may rely on others for assistance with everyday tasks, especially if they have mobility issues or medical problems. This puts them at a higher risk of being abused.
For example, a relative may threaten to cut off contact unless the older adult gives them money. This can be devastating for someone who is already socially isolated.
If the abuser is a family member, the older adult may be less likely to report the abuse or seek out alternative caretakers.
Are you concerned that you or someone you care about may be a victim of elder financial abuse? The following signs might indicate that someone is being taken advantage of:
Keep yourself and your family safe by practicing the following:
Some older adults may no longer have their driver’s licenses, or they may face mobility issues. As a result, going shopping or attending appointments can pose challenges.
Rather than relying on people you may not trust for assistance, consider using a service instead.
Many grocery stores offer delivery services. And if you don’t feel comfortable asking a family member for a ride to an appointment, consider using a ride-sharing service instead.
Power of Attorney is a legal document that gives another person the authority to manage your finances once you are no longer able to do so for yourself.
If you are unable to manage your money due to cognitive decline, your attorney can do so for you.
It’s best to appoint a Power of Attorney before you need one—that way, you’ll be prepared for the unexpected.
Many people choose to give Power of Attorney to a friend or family member. But in some cases, having a Power of Attorney can lead to elder financial abuse.
Before selecting someone as your attorney, ask yourself the following:
Keep in mind that you have the option of appointing a financial professional as your attorney. You can also appoint multiple people to act as your attorney.
Here’s what you can do to intervene if you suspect someone is being taken advantage of:
Your loved one may not want to admit that they’ve been the victim of fraud or financial abuse—it can be embarrassing to tell someone you’ve been taken advantage of.
“Oftentimes, the older adult feels ashamed about what happened. They don’t want to press charges because it’s a family member,” says Nicole.
“The person who took advantage of them may be the same person who drives them to their appointments, and they don’t know how they’ll get around otherwise.”
But if you’re concerned that someone close to you may be being abused, it’s important to start the conversation. Make it clear that there’s nothing to feel ashamed of, and that you only want to help.
If you’re concerned that someone you know may be being abused, you can contact The Seniors Abuse Support Line in Manitoba at 1-888-440-6366.
Do you have questions about how to protect your finances as you age? Maybe you’re thinking about your retirement plan. At Cambrian, we can help with that. Contact us today to learn more.
We would be happy to discuss your unique situation with you.
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