Seniors Scammed by Families (Australia)

By Kate Perry
January 10, 2008

ELDERLY Australians are more likely to be ripped off by their nearest and dearest than Nigerian scammers or dodgy door-to-door salesmen, research shows.
While many ageing Australians are living it up and happily spending the kids’ inheritance, other more vulnerable members of society are being ripped off by relatives who are “inheritance impatient”
.
A report on the financial abuse of vulnerable older people by the Banking and Financial Services Ombudsman (BFSO) says close relatives are involved in 80 per cent of suspected financial abuse cases involving elderly victims.

Abuse can range from pocketing a little extra cash when making a bank transaction, to fraud, emotional blackmail or forgery.

What’s yours is mine Abusers often have a sense of entitlement to what they see as family assets. They think they should eventually inherit certain money or property and want to benefit immediately rather than wait.

“In the disputes that we have seen, the most common situation appears to be ‘inheritance impatience’ on the part of adult children, their spouses or de-facto partners, including competition between siblings for ‘their share’,” the BFSO report said.

The BFSO says in many cases of abuse there is also an attitude that the needs of the older person are secondary to the needs of the abuser, with some people not spending the money needed to make life comfortable for their elderly relative because it might eat into the inheritance nest-egg.

The rampant housing market has also made the home-owning older generations wealthier than ever, while at the same time making it harder and harder for younger people to get into the property market.

“This can result in the belief of adult children and grandchildren that the assets of older relatives should be regarded as ‘family assets’,” the BFSO report states.
Dependence leads to vulnerability Dementia makes an elderly person particularly vulnerable to abuse, but those who are emotionally or physically dependent on others – due to reduced mobility vision or hearing – are also easy targets.

• 72.4 per cent of older Australians receive help with their paperwork
• 54.6 per cent get help with paying bills
• 41 per cent are helped with accessing their money and banking
• 36.9 per cent are helped with their pensions and funds management

Source: Older People and the Law report

Abuse or family dynamics? Defining financial abuse can be tricky. Different dynamics mean what is seen as appropriate in one family could be seen as overstepping the mark in another.
It can be obvious crimes such as fraud, theft or financial advantage by deception.
But there’s also a grey area, where conduct is improper rather than illegal, and where a relationship might cloud the question of consent.
Emotions play a strong part in financial abuse and BFSO draws analogies between elderly victims who have been ripped off by loved ones and people who have suffered domestic violence.
“Where financial abuse occurs in a relationship of dependence, the older person may fear that telling someone about the abuse will lead to the loss of the relationship, possible retaliation or further loss of independence.”

The BFSO says not all abusers set out to rip-off the elderly, with some people being tempted over time – initially carrying out banking and other financial tasks with the best of intentions but gradually upping the amount and frequency of withdrawals for their own advantage.

Steps to protect yourself or your loved-one:

• Avoid making important decisions following a significant event such as the death of a partner.
• Make all plans for the future when you are well, healthy and independent.
• Don't give up control of your assets while you can manage them.
• Seek a wide social network beyond your immediate family.
• Have all of your pensions and cheques credited directly to your bank account.
• Know you have a right to confidentiality, privacy and to refuse anyone to intervene on your behalf.
• Ask for help if needed and fully understand all legal documents before signing. • Don't allow adult children to live with you without first seeking advice from a trusted person. Source: Elder Abuse Prevention Unit

Article from: news.com.au