Sometimes the hardest conversations are the most important ones. Staying alert and talking about elder financial abuse isn’t easy, but it crucial to protecting the financial wellbeing of those who might be too vulnerable to protect themselves. Whether it’s a family member, a trusted friend, or even a stranger, financial abuse can happen to anyone. The good news is that awareness and early action can make all the difference.
What is Elder Financial Abuse?
Elder financial abuse is when someone improperly, illegally, or without permission uses an older person’s money, property, or assets. It often leads to financial loss or hardship and usually involves someone in a position of trust, like a family member, caregiver, or legal representative. But it’s not always someone close, online scams and cybercrime are increasingly common. And it’s important to remember this can affect any older adult, regardless of financial status, gender or mental capacity. Knowing what to look for is the first step toward prevention.
Financial abuse can take many forms. Sometimes it’s emotional manipulation: appeals to guilt or sympathy, like “I’ll be homeless without your help”. Other times it’s coercion or threats, using fear to force compliance. Some abusers withhold access to loved ones unless financial demands are met, while others deceive by pretending to manage finances for the victim’s benefit. Misusing legal authority, such as exploiting a Power of Attorney, is another serious tactic.
Common Tactics to Watch For
- Emotional manipulation or guilt
- Coercion and threats
- Withholding access to loved ones
- Misuse of legal authority like Power of Attorney
While many cases involve people the victim knows, elder financial abuse also happens online. Romance scams, scammers impersonating banks or government agencies, phishing emails, and unauthorised access to online banking are all risks. Helping older adults understand and learn safe digital practices is one of the best ways to reduce these threats.
How to Spot and Prevent Elder Financial Abuse
Spotting financial abuse isn’t always straightforward. Warning signs can include changes in mood or behaviour, such as withdrawal or anxiety, or a lack of basic necessities despite adequate income. Irregular banking activity, unexplained withdrawals, or unfamiliar transactions even if in small amounts should raise concern. Unexpected changes to wills, property titles, or Power of Attorney documents are also red flags, as are unpaid bills or new credit lines the individual didn’t authorise or didn’t have the ability to fully comprehend it.
Certain factors can make someone more vulnerable. Cognitive decline from dementia or Alzheimer’s, social isolation, family pressures, language or literacy barriers, and even a sense of entitlement from relatives or carers can all increase risk. These realities make proactive steps even more important.
Taking preventative measures can make a world of difference. Staying connected with older family members helps reduce isolation and makes it easier to spot changes. Setting up an Enduring Power of Attorney with someone trustworthy is another safeguard. Keeping personal and financial documents secure is essential, and educating older adults about scams, both online and over the phone can help protect them. Monitoring for unusual financial activity and contacting the bank immediately if something seems off is also key.
Quick Prevention Checklist
- Stay connected with older family members
- Set up a trusted Enduring Power of Attorney
- Keep documents secure and private
- Educate on scam awareness and digital safety
Take Action and Seek Support
If you suspect financial abuse or are affected by it, support is available. Your bank can help, and customers can report issues through the you Mobile App or by contacting our Customer Service Centre. The National Elder Abuse Helpline (1800 ELDERHelp) offers confidential assistance, while Lifeline provides emotional support on 13 11 14. Cyber-related crimes can be reported through ReportCyber, and Scamwatch helps track fraudulent activity. IDCare offers practical help for identity theft and cyber security issues.
Digital safety is more important than ever as older adults manage their finances online. Strong passwords, secure devices, and caution with unsolicited requests can significantly reduce exposure to risks like identity theft and unauthorised access to accounts. Encouraging these habits is one of the most effective ways to protect financial wellbeing.
Elder financial abuse is a serious and growing concern. By fostering awareness, staying vigilant, and having open conversations, families and communities can play a vital role in protecting older Australians. Early detection and strong support systems are key to prevention and recovery.
Your Action Plan for Peace of Mind
- Watch for warning signs and unusual financial activity
- Encourage safe digital habits
- Seek help early from trusted services and your bank
At SCCU, we’re here to help protect what matters most. If you or someone you care about needs support with securing accounts, setting up safeguards, or understanding financial options, talk to us confidentially today. Your safety and peace of mind are our priority, because banking should always feel safe, secure, and supportive.
Southern Cross Credit Union Ltd 82 087 650 682 AFSL and Australian Credit Licence 241000. Any advice is general advice only and does not take into account your objectives, financial position or needs (your ‘circumstances’).
