Financial abuse in families can be surprisingly common. A study published in October 2023 on the Cambridge University website showed that almost 74 per cent of financial abusers were family members.
An older report by King’s College London and the National Centre for Social Research published in 2007 revealed that 57,000 people aged 66 and over in the UK had suffered financial abuse by a relative, friend or care worker.
Even if you have a close-knit family, never assume it can’t happen.
If you suspect someone may be guilty of financial abuse, it may be tempting to ignore your instincts and tell yourself you’re worrying over nothing. If the person is a relative, it’s understandable that you may be reluctant to confront them. However, it’s hugely important to acknowledge your suspicions so that you can put a stop to any wrongdoing quickly before it escalates.
What to do if you suspect financial abuse
Speak to the person’s bank if you think the potential abuser has been accessing your loved one’s bank account
Go to the bank in person with your loved one if need be, and ask the bank to print out statements if you suspect it’s been going on for some time
Cancel your loved one’s debit cards if you believe that someone may have been using them or have their card details
Obtain third party authority on your loved one’s bank accounts. This will enable you to monitor their accounts and manage their everyday banking. You may be able to do this online with your loved one but it’s also likely that you’ll need to visit their bank with the person
If you suspect theft from their bank account has occurred, speak to the police immediately and obtain a crime reference number
If you are worried that someone has been abusing their attorney status with a Lasting Power of Attorney, it can be revoked if your loved one has capacity. Contact the Office of the Public Guardian on 0300 456 0300 or email opg.safeguardingunit@publicguardian.gsi.gov.uk
If your loved one is classed as an elderly person, seek advice from The National Careline on 0800 0699 784, email office@thenationalcareline.org or visit https://www.thenationalcareline.org/
Depending on the situation, it may be worth seeking advice from a solicitor
Encourage the person to make a Lasting Power of Attorney (LPA) for Property & Financial if they haven’t already so that you can safely manage their financial affairs. <Link to LPA article>.
Helping the person manage their spending
You might also want to accompany your loved one as much as possible when they go shopping. Debit cards can be easily lost, or the person may be buying things they don’t need that they already have indoors. The person may purchase the same item multiple times or buy gifts or make donations they can’t afford.
To manage the situation, you could set up a separate account with limited funds so the person can’t overspend.
If they have a credit card, you could reduce its spending limit.
You may wish to look into the Sibstar debit card designed to help a person with dementia manage their spending safely. It works like this: your loved one has a Sibstar debit card, and you download. You then use the app to set limits on the card's use. You can set daily and monthly spending limits to protect your loved one’s finances. You can change the limits when you feel the need arises.
To help the person manage their bills, set up automated payments and check their bank statements every month.