Older Australians face increasing risk of financial abuse

A leading Australian bank has urged older people to remain vigilant against financial abuse and scams on World Elder Abuse Awareness Day.

Older Australians are the most likely to falls victim to scams, including card fraud, identity theft, and various fraudulent schemes, compared to other age groups.

The CommBank survey, based on nearly 2,000 people aged 65 and above, revealed that 28 per cent had either experienced financial abuse or knew someone who had.

Older Australians reported the highest number of scams, with nearly 50,000 incidents, and faced the largest financial loss of $120.7m.

Group Customer Advocate at CommBank Angela MacMillan said the findings underscored the urgent need for awareness and robust protective measures to safeguard this vulnerable demographic.

“Disturbingly, anyone can become a victim of a scam, fraud or financial abuse, regardless of age,” Ms MacMillan said.

“But as people age, they can be at higher risk of being taken advantage of financially.”

Ms MacMillan said stigma persisted around discussing finances, leaving older Australians more vulnerable to exploitation.

The survey revealed that 38 per cent of older people felt uncomfortable talking about finances with family and friends.

The majority (70%) only had money-related conversations every two to three months or less.

This stands in stark contrast to other age groups, where, for example, 64 per cent of Millennials discussed financial matters on a monthly basis.

Among those facing financial abuse, 52 per cent believed they could resolve the abusive behaviour themselves.

Moreover, a staggering 90 per cent of older people said there were significant barriers in accessing support after experiencing financial abuse.

Six in ten respondents said they didn’t feel confident enough to help someone who had faced such abuse.

Overall, it’s estimated that 53 per cent of scam activity involves people over 55.

In addition to pressure, intimidation, scams, and fraud being prevalent forms of financial abuse targeting older people, the abuse of Power of Attorney was ranked as the top concern.

A Power of Attorney grants authority to another person to make decisions on behalf of someone unable to manage their affairs due to illness, absence, or other circumstances.

However, this position can be abused when someone misuses their authority for personal gain or neglects their responsibilities.

Despite its potential protection, 13 per cent of individuals with an active power of attorney reported experiencing elder abuse.

Ms MacMillan said that seeking legal advice could help people make a will and create a power of attorney document that can be shared with third parties.

“It’s important to pick the right team captain while you’re healthy,” Ms MacMillan said.

“Consider your relationship with each family member and whether they have the right capabilities and time to assist you – now and in the future.”

Last April, the Australian Competition & Consumer Commission (ACCC) alerted Australians to the significant rise in new scamming techniques, making them exceptionally challenging to identify.

Tactics such as using official phone numbers, email addresses, and websites of legitimate organisations, as well as scam texts integrated into genuine message threads. 

The ACCC estimated that scam losses reached a new record in 2022, surpassing $3.1bn, a substantial increase from the $2bn lost in 2021.

But ACCC Deputy Chair Catriona Lowe said the ‘true cost of scams is much more than a dollar figure as they also cause emotional distress to victims.’

“Scammers evolve quickly, and unfortunately, many Australians are losing their life savings,” Ms Lowe said.

“Now more than ever, anyone can fall victim to a scam.”

In response, CommBank designed a guide to help older Australians avoid financial abuse, scams, and fraud.

“We hope it provides the necessary tools for older Australians to protect themselves from financial abuse,” Ms MacMillan said.

“It also highlights that there’s support available if they suspect they are experiencing it.”

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