Financial abuse statistics: Introduction
How common is elder abuse? As Canadians we should be ashamed that the financial abuse statistics show it is the most common form of elder abuse in Canada. There are countless stories about seniors being financially exploited by someone close to them – spouse, child, friend, neighbour or caregiver.
The victims are typically alone, lonely, in poor health or in diminishing capacity. They’re easy prey and in many cases lose their savings and their homes, with just their pensions left to exist on. According to Lynn MacDonald, director of the Institute for Human Development, Life Course and Aging at the University of Toronto, one of the elder abuse facts is that 2.6% of Canada’s growing population of residents 55 years of age and older are financially abused. It’s very sad that we now have to educate seniors on how to protect themselves from those closest to them.
Financial abuse statistics: What is financial abuse?
Financial abuse can take many forms. The most obvious forms of financial abuse are actually theft or fraud. E.g. someone takes money out of your bank accounts for their own use without your permission.
Even if that person has power of attorney it’s still illegal because they are legally obligated to act in your interests, not theirs. Having power of attorney doesn’t mean anyone can help themselves to your money or property. Or, someone cashes your pension cheque and keeps some of the money for themselves without your permission.
Financial abuse statistics: Other forms of elderly financial abuse
Other forms of financial abuse are less obvious, but just as dangerous. According to the Government of Canada financial crimes against the elderly can include pressuring, forcing or tricking you into:
- Lending or giving away money, property or possessions
- Selling or moving from your home
- Making or changing your will or power of attorney
- Signing legal or financial documents that you don’t understand
- Working for little or no money, including caring for children or grandchildren
- Making a purchase you don’t want or need, or
- Providing food and shelter to others without being paid
Financial abuse statistics: How can you protect yourself from financial abuse?
You really need to be cautious. Remember that the money and property is yours.
- Safeguard your personal information
- Don’t give out your online banking information or PIN numbers
- Be cautious about opening a joint bank account because the other person can take all the money without asking or needing permission
- Don’t co-sign credit cards or have joint credit cards. The other person can accumulate huge debts that you will be responsible for
- Have your lawyer prepare a power of attorney appointing someone you can trust to look after you so that even if you’re ill and can’t take care of yourself, to protect your finances from others who might try to take advantage of you (pick someone who isn’t in a constant need of money)
- Never sign any documents without legal advice from your lawyer
- Keep detailed records of any money you give away and whether it’s a gift or loan
- Don’t allow yourself to become isolated with only the abuser to depend on. It will give them all the power they need to take full advantage of you
Financial abuse statistics: What are the signs of financial abuse?
According to Leanne Kaufman, head of RBC estate and trust services, be vigilant for red flags such as new bills suddenly being paid or an inordinate or unusual number of financial transactions. And watch for changes in financial spending patterns or the types of places where money is spent.
Financial abuse statistics: Are facing debts you can’t cope with?
The sad reality is that everyone is vulnerable, not just the rich. If you’ve been a victim of financial abuse and/or are facing debts you can’t cope with for any reason, contact the Ira Smith Team. We give the depth of expertise found in a large company, delivered in a boutique setting that ensures high quality and cost-effective service. With a cumulative 50+ years of experience dealing with diverse issues and complex files, we deliver the highest quality of professional service. Contact us today and let us help you overcome your financial difficulties Starting Over, Starting Now.