Financial Abuse of Older Adults: How to Recognise It and What to Do

The Hidden Nature of Financial Abuse

Financial abuse is the most prevalent form of elder abuse in the UK, yet it is consistently underreported and underrecognised. It causes significant harm, not only through direct financial loss but through the loss of independence, security, and trust that follows when someone's finances have been manipulated or stolen by a person they trusted.

One of the reasons financial abuse is so difficult to identify and address is that it is often perpetrated by people close to the victim: family members, friends, carers, or neighbours, rather than strangers. This proximity makes disclosure difficult and makes it harder for concerned outsiders to intervene without appearing to interfere in family matters.

What Financial Abuse Includes

Financial abuse of older adults encompasses a wide range of behaviours. It includes theft of money or possessions, whether in person or by fraud. It includes using a Lasting Power of Attorney or deputyship arrangement in ways that do not serve the person's interests. It includes pressuring an older person to change their will, give gifts, or transfer property. It includes misusing joint bank accounts. It includes preventing an older person from accessing their own money or making their own financial decisions. It includes charging excessive fees for care or services, and making financial decisions for someone without their knowledge or consent.

Scams and fraud perpetrated by strangers are also a form of financial abuse, though they are often treated separately. Phone scams, online fraud, and doorstep crime targeting older adults all result in significant financial loss and psychological harm.

Who Perpetrates Financial Abuse

Research consistently shows that the majority of financial abuse of older adults is perpetrated by family members, most commonly adult children. This does not mean that most children financially abuse elderly parents; the proportion is small. But it does mean that the protective assumption that family is safe is not always correct, and that financial abuse should be considered in family contexts as well as professional and stranger ones.

Other common perpetrators include carers (paid and unpaid), friends and neighbours, professionals (financial advisers, solicitors, tradespeople), and romantic partners who enter the older person's life, sometimes specifically in order to gain financial access.

Warning Signs

Warning signs that financial abuse may be occurring include unexplained withdrawals from bank accounts or changes in banking patterns, utility bills going unpaid when there should be sufficient income to cover them, an older person being unable to explain where their money has gone, sudden changes to a will or transfer of property, new individuals appearing to have significant influence over the older person's finances, an older person appearing anxious or secretive about money, and possessions going missing from the home.

For professionals in contact with older adults, additional signs include an older person not being allowed to speak for themselves in financial conversations, someone accompanying them to appointments and answering on their behalf, an older person appearing frightened of the person accompanying them, and a change in mood or behaviour around financial topics.

Legal Protections and Formal Safeguards

A Lasting Power of Attorney (LPA) for property and financial affairs is a legal document giving a named person (the attorney) authority to make financial decisions on behalf of the person creating it (the donor). LPA is an important planning tool but can also be misused. The Office of the Public Guardian oversees LPA use and can investigate complaints of misuse. If you are concerned that an LPA is being used against the interests of the donor, contact the OPG on 0300 456 0300.

Banks have safeguarding responsibilities and can raise concerns about unusual account activity. Many banks now have specialist teams dealing with financial abuse and vulnerability who can take protective action including monitoring accounts and requiring additional authorisation for large transactions.

Adult Social Care at the local authority has a duty to investigate concerns about the welfare of adults at risk under the Care Act 2014, including concerns about financial abuse. Anyone can make a safeguarding referral to adult social care; you do not need to be a professional to do so.

Reporting and Support

Financial abuse of an older adult should be reported to the police if it constitutes criminal activity, which theft and fraud clearly do. Report to Action Fraud (0300 123 2040) for fraud-related matters. Contact adult safeguarding at the local authority for concerns about an older person's safety and welfare. The National Domestic Abuse Helpline (0808 2000 247) covers financial abuse within family and intimate partner contexts. Age UK provides advice and support on financial abuse and can assist with navigating reporting and legal options.

If the older person is at immediate risk of losing their home or all their savings, legal intervention through the Court of Protection may be needed urgently. A solicitor specialising in elder law can advise on emergency protective measures.