Elderly targeted in credit crunch fraud
March 02, 2009
Exeter-based Stephens Scown says it has seen an increase in the number of clients who have been victims of fraud, and believes the number could increase even more.
Age Concern said elderly people are conned out of millions of pounds every year, many of them by strangers operating by post or over e-mail. But Stephens Scown has warned that in many cases, the culprits are trusted friends or relatives, with full access to their victim's bank details.
Civil litigation expert Phil Gregory said tough financial times, coupled with modern technology granting easy access to finances, could lead to a rise in such fraud.
In Exeter alone, the company is now advising eight clients about recovering money and property they have been persuaded to give away or that has been taken from them without their knowledge.
Mr Gregory said: "There is no doubt that people are looking to maximise their retirement income because of the recession.
"But that means they may be more susceptible to suggestions that they move their investments or savings around, and that's when fraudsters – or even friends and family – may take advantage."
One of Mr Gregory's current cases involves an elderly lady who has lost more than £65,000.
He said: "My client was befriended by a man who said he could improve the performance of her investments.
"She gave him power of attorney over her affairs which allowed him to transfer funds. She has not seen her money since and we have advised her about freezing his assets and securing orders for the return of her money."
Mr Gregory said other cases involved elderly people being coerced into changing their wills – often by their own children or other family members – in order to increase their own inheritance or to write out others.
"I deal with a lot of cases of contentious probate where there is a claim that a will has been made or changed under duress or coercion," he said.
"I am currently acting on a number of cases where a wronged party is seeking to have the will overturned because they have been written out or they are receiving much less than they anticipated.
"In the current climate, where people are struggling to pay their own bills, it can be very tempting to take advantage of an elderly relative and sadly it's not uncommon."
The charity Action on Elder Abuse has estimated that tens of millions of pounds are taken, stolen or defrauded from elderly people every year.
The majority of victims are women aged over 81, and the majority of perpetrators are sons or daughters.
Mr Gregory said elderly people could take a range of steps to protect themselves.
Stephens Scown's litigation and dispute resolution team is top ranked in this year's Chambers independent guide to the legal profession, being described as "absolutely first class".
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