'More older people at risk of financial abuse than ever before' warns Help the Aged

28/04/2008

Increasingly complex financial products and services, combined with the widespread closure of post offices, means greater numbers of older people  could be vulnerable to financial abuse than ever before, Help the Aged has warned.

The charity also published the findings of an extensive literature review, examining financial abuse in depth. 

Help the Aged is now to create a financial abuse taskforce, and has released guidelines on how best to prevent and identify financial abuse of older people. Help the Aged's Head of Policy, David Sinclair, said: "After neglect, financial abuse is estimated to be the second most common form of abuse older people face.  

"Initiatives such as 'chip and pin', the rise of internet banking and widespread closure of local banks and post offices mean older people could be at greater risk of this kind of abuse than ever before.

"Modern banking methods may also lead to older people becoming ever more distant from their finances, often handing over responsibility for managing their money to carers sooner than they used  to do.

"One of the problems is that this form of abuse is ill-defined and poorly understood. Financial abuse can range from family members forcing individuals to accept lower quality care services in order to preserve funds they expect to inherit, or accessing an older person's bank account without their permission, to overcharging for simple work around the home. 

"Numerous reports and investigations have called for greater action to combat financial abuse, but little has been done. Help the Aged is now proposing the creation of a financial abuse taskforce to raise awareness of this form of abuse, with training for professionals in preventing and identifying it, as well as increasing support for older people in managing their finances."

Research commissioned by Help the Aged found that:
•  The impact of  financial  of abuse on older people can be devastating - victims can develop an acute sense of distrust, and become  fearful and withdrawn. Older people may also lack the time or resources to 'recover' financially. 
•  Government guidance  on  elder abuse,  No Secrets , isn't working 
•  Financial abuse is not well understood: wide-ranging research is needed on all aspects of financial abuse  

David Sinclair also urged people to take steps to protect themselves, and called on everyone to be on the lookout for financial abuse.

He said: "Existing legislation needs to be enforced and perpetrators of elderly financial abuse should be prosecuted.

"The best way of protecting older people from financial abuse is to prevent it.  Help the Aged has identified  five  key ways in which older people can lower their risk.

1. Establish a relationship with the personnel at your bank
2. Put all financial instructions in writing and be specific
3. Keep accurate and complete financial records of all transactions
4. If someone is helping you to manage your finances, let a trusted third person to review your bank statement.
5. Don't sign anything without reading it carefully.

David concluded: "The Government, banks and the Financial Services Authority must also ensure there is adequate education and advice available to reduce the risk of abuse."