Indicators of potential financial abuse

Senior Rights Victoria has a full list of the signs and risk factors that may indicate potential financial abuse.

The key ones include:

• promises of "good care" in exchange for transferring property or money to the carer
• fear, stress or anxiety expressed by the older person
• unfamiliar, new or forged signatures on cheques and documents
• the older person is unable to access bank accounts or statements themselves
• large, unexplained withdrawals from bank accounts
• sudden transfer of assets at a time when the older person may no longer be competent to manage their own affairs
• accounts suddenly switched to another financial institution or branch
• drastic, erratic or uncharacteristic changes in the types of banking activities
• drastic changes to a will, power of attorney or other legal documents

The following factors, if present, indicate the person may be at risk of financial abuse. You should be vigilant for signs of abuse, such as:

• physical frailty
• low self-confidence
• dependency on others for basic needs
• reduced capacity to understand information or make decisions
• isolation from neighbours, family or the community
• a trusting relationship with a person who has influence over decisions
• appearance of not being in control of their affairs
• evidence of undue influence of a family member
• unkempt or unclean appearance
• lack of formal arrangements for care and management of financial affairs
• history of physical or other forms of abuse
• apparent lack of a loving relative who clearly cares for the older person's welfare
• impatience or secretiveness of person purporting to manage the older person's affairs
• language difficulties, requiring a family member to translate
• the older person suffers from dementia and is aggressive and difficult to manage.

The following factors, if present, may indicate a lack of capacity of the older person:

• poor concentration – limited ability to interact with you or to repeat advice and ask key questions
• appears overwhelmed
• difficulty with recall or memory loss
• ongoing difficulty with communications – difficult to understand
• lack of mental flexibility – not open to even hearing about options or risks
• poor insight or judgment
• problems with simple calculations which they did not have previously
• your sense that "something about the client has changed".

Financial abuse of older people is usually accompanied by other forms of abuse. Where there is a history or evidence of physical, psychological or sexual abuse, or where a beneficiary appears to exercise undue influence over the older person, or where the older person appears fearful and reluctant to speak in the presence of a person with influence over their affairs, financial abuse should also be suspected.