Financial abuse is one of the most common forms of elder abuse in Canada. Learn how to identify and prevent it, plus where to go for help if you or an older person you know is being financially exploited.
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What does financial abuse of the elderly look like?
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 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.
What are signs you’ve been targeted for financial abuse?
Worried that you might be a victim of financial abuse? If you think you have been or are being targeted, share your concerns with someone you trust — a family member, long-time friend, religious, legal or financial advisor not closely related to the abuser. Abusers and criminals count on their victims’ silence — the sooner a light is shone on their activities, the less harm they can inflict.
Here are some of the more common victim experiences you should be on the lookout for:
- Feeling pressured to give or invest money.
- Being forced to sign unfamiliar legal or financial documents.
- Being pressured to change a will or hand over or change a power of attorney.
- Pension, insurance or other cheques being cashed without your permission.
- Being asked to hand over cash, cryptocurrency (e.g. Bitcoin) or valuables for alleged debts you didn’t know you had.
- Unexpected withdrawals from your bank or investment accounts.
- Unexplained disappearances of possessions, jewelry, or other valuables.
- Too good to be true investment opportunities.
- New people coming into your life who take too much interest in your finances.
- Being told not to speak to anyone else about any of the above.
10 steps to protect yourself against financial abuse
- Keep personal and financial information (PIN, passwords etc.) safe and only share it with trusted individuals. Check list: protecting your financial information.
- Set up automatic payments for bills and deposits into bank accounts and regularly review financial records for anything unusual.
- Be very cautious about opening a joint bank account with family members or other individuals.
- Understand all documents before signing; don’t hesitate to ask questions or to insist on taking time to consult with someone you trust.
- Don’t be coerced into lending money; and if its money you are willing to lend, be sure to get a signed repayment agreement — even if it’s a family member.
- Get legal advice before signing any documents for major financial decisions e.g., refinancing a home, investing in private investment schemes.
- Appoint a continuing or enduring power of attorney for property to help direct your finances if you find you are unable to do so yourself – but think carefully about who to appoint. Learn more about how power of attorney works.
- Introduce your assigned attorney to your legal and financial advisors – create a formal investment policy statement and discuss your wishes together so that there can be no confusion later about how you would want your finances managed.
- Identify a trusted contact – someone other than the attorney, that your legal or financial advisor can contact if they become concerned about your well-being. Learn more about appointing a trusted contact person.
- Stay connected with family, friends and the community so you don’t become isolated.
Who to contact if you suspect financial abuse
When an older person tells you that someone is taking advantage of them, take their claims seriously, ask questions and offer support.
If you, or someone you know, may be a victim of financial abuse, don’t hesitate to reach out for assistance.
Seniors Safety Line — 1-866-299-1011
The Seniors Safety Line is the only 24-hour crisis and support line for seniors in Ontario who have experienced any type of abuse or neglect. Callers receive emotional support, safety planning, information and referrals in over 200 languages.
Elder Abuse Prevention Ontario
Provincial organization focussed on elder abuse prevention in the province that provides education, training, resource development and information about the increasingly complex issues of elder abuse.
Local police
Fraud or financial abuse is a serious crime. Non-emergency police staff can help investigate suspicious activity and potentially charge those who break the law.
Canadian Network for the Prevention of Elder Abuse (CNPEA)
Get a better understanding of elder abuse with tips and resources in every province.
Resources for investors, including seniors
Helpful websites and tools to begin finding answers to your questions and to connect with community supports.
Canadian Anti-Fraud Centre 1-888-495-8501
The Canadian Anti-Fraud Centre receives complaints about identity theft, fraud and scams via phone, Internet or mail. And it provides information on frauds and scams and consumer protection.
Ontario Securities Commission 1-877-785-1555 (toll-free)
The OSC has many important fraud prevention and investor protection resources including:
- Check before you invest – always check the registration of any person or business trying to sell you an investment or give you financial advice. Learn how to check registration, the signs of fraud and see investor warnings and alerts.
- Learn to spot and avoid fraud.
