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Financial Abuse

Financial Abuse

1. What is Financial Abuse?

Financial Abuse includes:

  1. Having money or other property stolen;
  2. Being defrauded;
  3. Being put under pressure in relation to money or other property;
  4. Having money or other property misused.

Scams are a particular exploitative type of financial abuse. If scams are the type of financial abuse taking place also see: Exploitation: Scams.

2. Who is most at Risk?

There are certain indicators that, if present might increase an adult's risk of financial abuse.

  1. They have communication difficulties;
  2. They are socially isolated i.e. do not have friends or visitors;
  3. They are dependent on a carer or family member for financial purposes;
  4. They have substance misuse problems.

3. Perpetrators of Financial Abuse

Anyone can be a perpetrator of financial abuse.

Common perpetrators are family members, predatory individuals and unscrupulous professionals or businesses.

3.1 Family members and friends

There is an increased risk from family members and friends when any of the following apply:

  1. They have financial problems of their own;
  2. They have issues with alcohol or substance use;
  3. They have a gambling issue.

When confronted, they will often have a rationale or excuse that, to them, justifies their behaviour.

For example:

  1. The adult offered them the money or asset;
  2. The adult would want them to have the money or asset;
  3. They need the money or asset more than the adult;
  4. They stand to inherit and are therefore only taking what is "rightfully" theirs;
  5. They worry that the adult is unable to manage their finances and will spend all their money (having a negative impact on the family member or friend's inheritance);
  6. They feel a sense of entitlement having given up so much for the adult;
  7. They want to prevent other family members or persons from acquiring or inheriting the adult's assets.

The adult may also be defensive of their family member or friend and insist they do not want to complain or that "it was their choice to give the person the money / asset", however often it happens.

The financial abuse taking place should always be considered in the whole family context and may be an indicator of wider domestic abuse.

Note: Not all family members or friends that perpetrate financial abuse will be doing so intentionally. Some may have a genuine desire to support the adult to manage their finances but be unaware that the way they are doing so is not lawful. If this is the case the family member or friend should be given good information and advice about appropriate measures that they may be able to take, such as becoming the adult's appointee, Lasting Power of Attorney or Deputy.

3.2 Predatory individuals

Predatory individuals seek out vulnerable adults with the sole intent of exploiting them.

They may identify an adult through social media, or by driving/walking through a neighbourhood to identify anyone who is lonely, isolated or vulnerable. Often, these individuals will create fake online profiles or move from community to community to avoid apprehension (transient criminals).

When an adult is identified, the individual will find a way to become acquainted and start building trust, so they are ideally placed to exploit them financially. They may:

  1. Befriend an adult that craves friendship;
  2. Profess to love the adult ("sweetheart scams");
  3. Seek employment as a personal assistant etc. to gain access.

Also see: Exploitation: Scams.

3.3 Professionals and Businesses

Financial abuse is instigated by legitimate businesses and professionals, but also by predatory individuals posing as such.

All of the following may constitue financial abuse:

  1. Overcharging for services or products;
  2. Using deceptive or unfair business practices (e.g, charging for work not completed or completing work that isn't necessary);
  3. Using positions of trust or respect to compel the adult into giving them finances or assets (e.g. helping them with their own financial problem, writing them into a will).

Also see: Exploitation: Scams.

4. Indicators of Financial Abuse

Potential indicators that an adult may be experiencing financial abuse include:

  1. A change in living conditions;
  2. A lack of heating, clothing or food;
  3. An inability to pay bills/unexplained shortage of money;
  4. Unexplained withdrawals from an account;
  5. Unexplained loss/misplacement of financial documents;
  6. The recent addition of authorised signers on a client or donor's signature card;
  7. Sudden or unexpected changes in a will or other financial documents.

This is not an exhaustive list, nor do these examples prove that there is actual abuse occurring. However, they do indicate that a closer look and enquiries may be needed.

Financial abuse should also be considered when an adult:

  1. Does not have their money or possessions appropriately recorded by a care provider;
  2. Loses money or possessions;
  3. Does not have access to their money, or to possessions that they want or need;
  4. Is not routinely involved in decisions about how their money is spent (for example if they do not get a personal allowance), or how their possessions are used;
  5. Appears to have bought things they do not need or invested money in things where they may lack capacity to make informed decisions;
  6. Finds the person managing their financial affairs to be evasive or uncooperative;
  7. Has family or others that show an unusual interest in their assets;
  8. Has unusual difficulty with their finances;
  9. Is uncharacteristically protective of money and things they own;
  10. Has their money spent or their possessions or property used by other people, in a way that does not appear to benefit them (for example, their personal allowance being used to fund staff gifts, or misuse of loyalty card points);
  11. Has treasured personal items constantly go missing;
  12. Gets married or enters into a civil partnership, if they are likely to lack capacity to consent to this;
  13. Changes a will under duress or coercion;
  14. Signs a lasting power of attorney when they do not have the mental capacity to make this decision;
  15. Does not keep personal financial information confidential.

5. Safeguarding Plans

Where financial abuse has occurred or there are ongoing concerns about financial management the following may need to be included in a safeguarding plan

  1. Change in Appointeeship;
  2. Criminal prosecution;
  3. Application to the Court of Protection to change a Lasting Power of Attorney or Deputyship;
  4. Bank account suspended/changed;
  5. Set up or cancel direct debits or standing orders;
  6. Action required in relation to the perpetrator;
  7. Provide new or increased support services;
  8. Involvement of a Financial Advisor or Debt expert;
  9. Other support to empower the adult to take control of the situation.

Last Updated: September 24, 2021

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