Financial & Elder Abuse

Financial and Elder Abuse

What is financial abuse?

Financial abuse happens when someone exerts control over another person’s money, assets, or financial decisions for their own benefit. It can cause significant harm to those affected, especially older or vulnerable people.

Financial abuse often overlaps with elder abuse (when the target is older) or domestic abuse (when it occurs in a personal relationship).

Elder Abuse

The World Health Organization defines elder abuse as:

“A single or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person.”

Often, the abuser is a family member, carer, neighbour, or friend — making it difficult to detect or report.

Common signs include:

• Unusual or erratic financial activity
• Transactions made by others that don’t align with the older person’s interests
• Being pressured or dominated when managing money
• Sudden fearfulness, withdrawal, or silence
• Lack of knowledge about recent transactions
• Mail or statements being withheld
• Unexplained use of powers of attorney

Why it happens:

• Isolation and dependency – greater reliance on others can increase risk
• Inheritance impatience – family members may feel entitled to early access to money
• Cognitive decline – conditions like dementia can leave people vulnerable

Domestic or Relationship Financial Abuse

This type of abuse occurs when a partner or family member uses money or financial control to dominate another person.

Examples include:

• Restricting or forbidding access to money
• Demanding pay, bank cards, or passwords
• Forcing someone to sign financial documents
• Withholding allowances
• Preventing the victim from working or controlling their wages

Powers of Attorney and Financial Abuse

A Power of Attorney (POA) is a legal document that allows someone to make financial or legal decisions on another person’s behalf. While POAs are designed to protect and support people, they can sometimes be misused.

Warning signs of POA misuse:

• The appointed person makes decisions without consulting the older person
• Unexplained withdrawals or transfers from accounts
• Property or assets sold without clear consent
• The older person feels pressured into signing or changing a POA

Protecting yourself with a POA:

• Only appoint someone you fully trust
• Consider appointing more than one person, or requiring joint decisions
• Seek independent legal advice before signing
• Review POAs regularly, especially if your circumstances change
• Keep copies of all documents and monitor account activity

How to stay safe or help others

• Take time before agreeing to any financial change
• Keep PINs, passwords, and login details secure
• Shred or destroy old statements and receipts
• Always ask for details in writing before signing documents
• Seek independent legal or financial advice
• Don’t allow anyone to pressure you into decisions
• Speak with your bank if you suspect financial abuse
• Talk openly with trusted friends or family when safe

We are here to assist

If you or someone you know may be experiencing financial or elder abuse, you are not alone. Help is available, and your concerns will be treated confidentially.

Contact us:

• Phone: 02 9763 3190
• Email: members@transportmutual.com.au
• Mail: Ground Floor, 410 Elizabeth St Surry Hills NSW 2010

If you believe someone is in immediate danger, call 000.

External support services

Here are some organisations that can help:

• 1800 RESPECT – 1800 737 732 (Domestic abuse support)
• Lifeline – 13 11 14 (Crisis support)
• Family Relationships Advice Line – 1800 050 321
• 1800 ELDERHelp – 1800 353 374 (Elder abuse support)
• My Aged Care – 1800 200 422

Important Information

This information is provided as a general guide only and is not a substitute for professional legal or financial advice. If you are considering a Power of Attorney or believe you may be experiencing financial abuse, please seek advice from a qualified legal professional or trusted advisor.