This World Elder Abuse Awareness Day (15 June), older people and the wider community are being urged to recognise financial abuse 'red flags' to help prevent exploitation.
Financial abuse is unfortunately common, with older people accounting for 30 per cent of such allegations reported to the NSW Ageing and Disability Commission (ADC) between 1 July 2019 and 31 March 2025.
The main perpetrators of financial abuse are adult children, with "inheritance impatience" and poor understanding or inappropriate use of Enduring Power of Attorney (EPOA) contributing to the problem.
The ADC has recovered many millions of dollars in money or assets lost or at risk following reports of financial abuse. However, most funds alleged to be misappropriated or stolen are never recovered, which is why recognising and preventing abuse is crucial.
The NSW Government recognises the vital need to protect the rights of older people, and is working hard to protect older people from elder abuse in all its forms.
Financial abuse cuts across all sections of society, involving older people with substantial wealth, as well as recipients of the aged pension.
It can include the older person being pressured or threatened to provide money or assets, being denied access to their own money or bank accounts, or having their finances used for someone else's benefit.
Older people can take important steps to reduce the risk of financial abuse, including:
- reviewing bank statements to identify unexpected or unauthorised transactions
- thinking carefully about who they appoint as their EPOA and making sure they understand their responsibilities
- being aware of their rights, including how to revoke or change the EPOA
- seeking legal advice before entering into any family agreements involving property or assets.
Minister for Seniors Jodie Harrison said:
"Financial abuse is often difficult to detect but can have a devastating impact on older people exploited by family members they should be able to trust.
"This cruel form of abuse can leave older people homeless or at risk of homelessness, without enough money to buy food or access essential services such as health care.
"We must take a stand against all kinds of abuse against older people, especially as our population ages.
"Older people and their carers should know that support is available and anyone with concerns can contact the NSW Ageing and Disability Abuse Helpline for advice."
Ageing and Disability Commissioner Jeff Smith said:
"We consistently hear older people subject to financial abuse say they never thought this could happen to them but, sadly, it is all too common and can happen to anyone.
"People can take steps to reduce the risk of financial abuse in simple ways such as checking bank statements, seeking independent financial or legal advice, and understanding their rights."
