Financial abuse of the elderly can take many forms – from financial exploitation to outright criminal fraud. It can look like:

• A door-to-door saleswoman who persuades a 92-year-old to buy energy-efficient roofing because it will pay for itself over 20 years.
• A friendly seniors’ centre volunteer who offers to help seniors manage their banking — only to drain their accounts dry.
• A scammer who extorts money from a 75-year-old pretending to be a relative in trouble abroad or someone from the tax department.
• A financial advisor who recommends unnecessary trades to increase their fees.
• An adult child who abuses their power of attorney for their dad to finance their own lifestyle.
• A caregiver who gets her client to loan her a large amount of money.

Who are the victims?

Anyone can become a victim of financial abuse. But older Canadians are often targeted for several reasons, including:

• Socially isolated – Many seniors live socially isolated lives that make them more open to a friendly overture from those who would defraud them.
• Heightened sense of fear – A heightened sense of anxiety that is common among older people may make them more likely to respond to scams involving alleged harm to a family member or threats of legal action against themselves.
• Lack of financial confidence – Surviving spouses who were not the primary financial partner and others who lack financial knowledge may become easy targets for manipulation and intimidation.
• Loss of sound financial decision-making ability – This normal aspect of aging may leave a senior susceptible to accepting advice designed to exploit their vulnerability.
• Financial insecurity – The actual or perceived possibility of outliving their financial resources can make seniors easy prey for phony get-rich-quick schemes.
• Increased dependence on others – Seniors who must depend on others for activities of daily living are at heightened risk for abuse by caregivers and power of attorneys.
• High levels of trust – Many seniors have high levels of trust and want to see only the best in those close to them — whether family or professionals. Their reluctance to believe that those they trust would harm them may make them an easy target for financial abuse.

What are the signs someone is being targeted?

Victims often don’t realize, or don’t want to consider, that they’ve been victimized. When they are aware, they may be too embarrassed to report it or even share their situation with close family members. Some of the signs that someone you know is at risk for financial abuse include: 

• Out-of-character withdrawals or transfers of funds from bank or investment accounts by an older account holder.
• Sudden or large withdrawals or transfers of funds from bank or investment accounts by an attorney or someone claiming to act for the older account holder.
• Changes to living arrangements, such as someone unexpectedly moving in and potentially living there rent-free, or the sudden sale of their home.
• Efforts by a third party to limit contact with family, friends and advisors.
• Refusal by a power of attorney to make the grantor available to confirm instructions.
• Arrival on the scene of a new romantic interest who insists on taking control of their new partner’s finances. Watch for signs of a romance scam.

Financial abuse by someone known to the victim, usually a caregiver or family member, is often accompanied by physical and/or emotional abuse. You may notice:

• Unexplained changes in grooming.
• Deteriorating physical health.
• Anxiety or fearfulness in the presence of the abuser.
• Significant changes in their previous routines.

For the complete articles, visit the Ontario Securities Commission site.