Red Flags for Financial Abuse of the Elderly

Fraud is becoming more prevalent globally, and the vulnerable and elderly are groups that are commonly targeted. The impact of financial abuse can be significant, and it is therefore desirable to prevent instances from ever arising or detect the signs of abuse at an early stage. Doing this in practice can be tricky, and sometimes documentary evidence may not exist or be difficult to obtain.

STEP (the Society of Trust and Estate Practitioners) has recently started an initiative to help people recognise the “red flags” that could indicate financial abuse. These include:

• A vulnerable adult spending beyond their means or contrary to their usual spending pattern, e.g., online shopping when they do not own a computer.
• Someone isolating a vulnerable adult from their usual support network.
• Missing money, bank/credit cards, cheques and bank statements without explanation.
• Valuables disappearing from a vulnerable adult’s home.
• Someone who has access to a vulnerable adult’s assets suddenly appearing to live beyond their means, e.g., purchasing luxury holidays.
• Unexplained ‘gifts’ or transfers being made from the vulnerable adult’s assets to a third party.
• High levels of cash withdrawals or ‘contactless’ card payments being made.
• Signatures on documents and cheques not resembling the vulnerable adult’s usual signature.
• Someone being added as a co-signatory to a vulnerable adult’s bank account without explanation.
• Unexplained changes being made to powers of attorney and wills.
• Unpaid bills or debt recovery, when the vulnerable adult should have sufficient assets available to pay and/or someone else should be arranging payments on their behalf.
• A vulnerable adult not having funds to buy items when they should have sufficient money available to do so.
• After a vulnerable adult’s death, assets missing from their estate, e.g., empty bank accounts.

Should you notice any of these red flags it may be prudent to commence an early investigation.

Keeping in regular contact with elderly relatives, listening to what they have to say and keeping an interest in their finances and how they are being managed could all be vital in helping to keep them safe. Although there is a perception that talking about money is vulgar, it can actually help loved ones feel less stressed and anxious about their finances. It is much easier to keep abreast of developments whilst your loved one is able to tell you what is going on rather than conducting a forensic investigation after they have passed away or lost capacity to manage their affairs.

Investigatory steps could take the form of instructing a solicitor to make further enquiries and/or reporting your concerns to adult social services or the police.

If the suspected abuse is being perpetrated by an individual acting under a Lasting Power of Attorney or Deputyship, then the Office of the Public Guardian and/or the Court of Protection might be able to assist.

At CWJ we have a team of lawyers including several full members of STEP who will be able to advise you in relation to issues arising out of Lasting Powers of Attorney or Deputyships. We also have cross over expertise in our Disputes Team should litigation ultimately become necessary, for example to challenge lifetime transactions or the provisions of a suspicious will.