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Whether it’s because they’re perceived as being wealthy or as an easy target, older people can be at increased risk of financial abuse. Abuse of this type can seriously harm an individual’s confidence as well as their bank balance. So it’s vital we all understand what it is and how we can keep those around us safe.
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Veronica Gray, deputy CEO of Hourglass, a charity that works to prevent the abuse and neglect of older people, says: “Financial abuse of older people is a complex yet common form of exploitation. It can include the theft of money and misuse of powers of attorney, through to scams, false representation and coercion of housing deeds.”
Some financial abuse can be overt and intentional. But as Jordan Clark, financial planner at wealth management company Quilter, explains, it can also be more subtle and unintentional.
“A family member with power of attorney might begin using funds in a way they believe their parent would have wanted, such as giving themselves payments for care, without realising this breaches their legal duty,” he explains. “Abuse isn’t always malicious but if money is being spent in a way that doesn’t clearly serve the older person’s best interests, it can still cause real harm.”
As shame, and a lack of awareness it’s happening, mean a large amount of financial abuse goes unreported, it’s difficult to get a true idea of the extent of the problem. It’s the most prevalent form of abuse reported to Hourglass, accounting for 30% of all its cases over the last three years.
Large amounts of money are involved too. The financial losses experienced by older people over those three years totalled more than £53m – although only 14% of the financial abuse cases Hourglass handled said there was a monetary loss.
“It’s very difficult to get a true figure of the money, possessions and assets taken or coerced from older people, but it’s undoubtedly into the hundreds of millions of pounds,” says Gray.
It’s also a problem that’s increasing.
Emily Deane TEP, technical counsel and head of government affairs at STEP (the Society of Trust and Estate Practitioners), explains: “More people are living with dementia and are increasingly reliant on others to help manage their finances. This makes them more vulnerable to abuse that is often hidden and may not come to light until after their death.”
Abuse can be committed by close family members, or by someone that the victim has only recently met. “There are some cases of almost professional abuse by predators,” says Melinda Giles, partner at Giles Wilson Law and a member of the wills and equity committee at the Law Society.
“A serial offender befriends lots of vulnerable people, gets appointed as attorney and then seriously financially abuses them.” Romance scams are an example of this type of abuse, with the fraudsters using online dating platforms to deceive older people and get them to hand over money.
Action Fraud reports that cases are growing by as much as 75% a year, with people aged 65 to 74 most likely to be affected. But sadly, although these cases make the headlines, most financial abuse is committed by trusted family members, carers or friends.
“Between 2021 and 2024, 84% of the cases we saw involved family members, with adult sons and daughters the most common perpetrators,” says Gray.
Some of these instances may have been unintentional. Or they could be what Gray refers to as ‘inheritance impatience’, where family members have a sense of entitlement as they think they’ll inherit it anyway. Or that they feel they deserve it for providing that person with care and support. “There’s never an excuse for abuse,” she adds.
Financial abuse can be overt or it may be incredibly subtle, but these are the warning signs to look out for:
The behaviour of other people can be another red flag. Gray says: “Someone moving into an older person’s home and living rent-free, without agreement or under duress, or the sudden appearance of previously absent relatives claiming their rights to possessions are warning signs.
“Also look out for deliberate isolation of an older person from their friends and family, giving the caregiver total control.”
Financial abuse can also affect the older person’s behaviour. Clark says: “You might notice that they’re anxious or withdrawn when money is mentioned. A lack of transparency or vague explanations around money should also raise questions, especially when someone is no longer managing their own affairs.”
If you’re worried a loved one is being financially abused, it’s important to take action. Deane says: “Stay connected, listen and ask questions. If you suspect something isn’t right, seek help.”
There are several different ways to get help. Hourglass has a confidential 24/7 helpline (0808 808 8141) where you can get advice and guidance. This is supported by a case work team who can work with individuals to ensure their safety and help them recover from any abuse.
The local authority can also help, says Giles. “Contact your local authority’s adult safeguarding team and ask them to do a safeguarding enquiry,” she suggests. “You can do this anonymously if you need.”
A solicitor or financial adviser can also provide advice. Alternatively, if you have concerns that a power of attorney is being misused, you can contact the Office of the Public Guardian. Clark adds: “If someone’s in immediate risk, involve the police.”
If you’re given the rights to manage a loved one’s finances, it’s worth knowing what you can and can’t do. Jordan Clark, financial planner at Quilter, explains: “Some people fall into unintentional abuse because they don’t fully understand the responsibilities they’ve taken on.”
As a representative, you have a legal duty to act in the best interests of the individual, prioritising their needs and preferences. This means budgeting carefully and maintaining detailed financial records including reasons for any changes you make to their finances.
Taking on this role also means there are things you shouldn’t do, as Emily Deane, technical counsel and head of government affairs at STEP, explains: “Don’t borrow or spend their money for your own use. This constitutes a breach of duty and could be illegal. It’s also important not to pressure them into making decisions: involve them as much as possible and always consider their wishes.”
STEP has a useful guide to your dos and don’ts as a representative but, if there’s any doubt about your responsibilities, seeking professional advice early is key to preventing problems.
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