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New data highlights the importance of being on the lookout for financial abuse of elders when it comes to the transfer of real estate.
Both the Commonwealth Bank and Bankwest reported on the issue on World Elder Abuse Awareness Day earlier this month, on 15 June.
What the banking institutions found is that not only is financial abuse of the elderly alarmingly present, but that many hesitate to seek help out of either embarrassment or because the perpetrators are friends or family, whom they do not wish to bring harsh retribution upon by involving authorities.
Staggeringly, the Commonwealth Bank found that one in four Aussies over the age of 65 have experienced financial abuse or know someone who has.
While internet, phone and text scams readily come to mind when hearing of elder financial abuse, the bank noted that many forms are actually perpetrated by someone close to the elderly person, and involve assets such as houses.
Abusing power of attorney – which can happen when a relative gives permission to sell a home despite the elderly person’s wishes, for example – was the most common form of elder financial abuse.
Abusing informal family agreements, which again often relate to high-worth assets such as real estate – was another frequent occurrence. Inheritance impatience, leading to threats and intimidation for an elderly person to part with their assets was also a worrying trend.
And guarantor abuse, in which an elderly person is manipulated into using their asset as security against the purchase of a family member's home, was also found to be a significant problem, particularly in the instances where the purchaser is then not able to meet repayments.
Indeed, in Bankwest’s own research conducted within the state of Western Australia, the financial institution found that as many as one in seven people had perpetrated financial abuse, though many were unaware they were doing so.
Meanwhile, an overwhelming nine in 10 of those surveyed by the Commonwealth Bank believe there would be barriers for those experiencing financial abuse in seeking support, and most (six in 10) would not be confident that they would know how to help someone experiencing it.
That’s why the Commonwealth Bank released a “Safe & Savvy guide” and are encouraging elderly people as well as those who may come into contact with them in the course of their financial transactions – such as real estate agents – to use it to identify and remedy concerning behaviour.
Angela MacMillan, group customer advocate at CommBank, explained that the guide “has been designed to help older Australians avoid financial abuse, scams, and fraud. It details the necessary tools to protect themselves from financial abuse and highlights the support available if they suspect they are experiencing it”.
Those who believe they may be witnessing elder financial abuse in the transfer of assets such as real estate can get advice on how to handle the matter from the government-run hotline 1800ELDERHelp, which connects callers with state-specific experts to give tailored advice.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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