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You're doing your part to protect your financial information online, and you don't entertain spam emails or calls that ask for account numbers and details. But unfortunately, financial fraud can hit closer to home than these kinds of scams.
Financial elder fraud is harder to spot and report because the fraudster can be a family member, friend or trusted caregiver. Canadian Securities Administrators (CSA) found nearly 29% of Canadians know a victim of financial elder abuse, while 42% said they couldn't recognize the signs of financial abuse.1
We're here to help.
How to spot financial elder abuse
Financial elder abuse is when another individual steals or misuses your money or property. The abuse can happen very obviously, like stolen cheques or possessions, but it can happen discreetly, too. Perhaps a loved one is constantly asking to borrow a small amount of money or is pressuring you to allow them to live with you rent-free.
A few warning signs that someone is trying to manipulate you financially:
They act like your money is their inheritance and they're entitled to it.
They constantly ask for small loans or amounts of money but never pay them back.
If you ask someone to repay money they borrowed, they grow angry or are dismissive.
They try to guilt you into giving them money or tell sob stories to make you feel bad for them.
They insist on controlling your money or being on your financial accounts because you aren't responsible.
They pressure you to change your will or power of attorney.
They pressure you to sell real estate or valuable possessions.
You notice financial account changes, charges or withdrawals you didn't authorize.
Your credit rating goes down significantly without explanation.
You notice cheques or personal belongings are missing.
Not all financial abuse is done in the same manner. Many of the above examples are behaviours a family member, caregiver or new “best friend" might exhibit. Other individuals, such as a lawyer or even a repair person, might start charging you more for their services or charge you hidden fees.
Even a trusted pastor might pressure you into giving more or donating for a specific church or community need. If you're asked to sign a strange paper or pay an amount you don't remember agreeing to, don't be afraid to seek trusted help first. Don't let anyone shame you into signing or paying for something out of your comfort zone.
Family abuse versus caregiver abuse
Although a wide range of individuals in your life can commit financial abuse against you, in many cases, family members or caregivers are to blame. This is simply because these individuals know you best and financial abuse isn't always obvious.
When it comes to family members, love doesn't mean access to your money. Just because your children’s or grandchildren's names are on your will doesn't mean they have a claim to your money while you're alive.
While it can be difficult to have boundaries with individuals you feel connected to, remember, if a person — be it family member, friend or caregiver — truly respected and cared for you, they wouldn't financially manipulate you.
Set yourself up for financial protection
Financial abuse is the top form of elder abuse in Canada.2 There are a few steps you can take to protect your most important assets.
Keep important financial info hidden away
It's important to check your financial accounts often and make sure your financial information isn't in plain sight. Keep your computer password-protected so visitors can't log in to your accounts. Also, keep cheques and debit and credit cards inaccessible to anyone who visits you.
Have separate accounts
Ideally, you shouldn't have all of your eggs in one basket — i.e., don't keep all of your funds in one bank account. Instead, have a chequing account with limited funds and access. This will limit the damage a financial abuser could do if they gained access to the account.
Set secure passwords
Having secure passwords and security answers that friends and family members can't guess will also keep your accounts safe. Make sure you receive free account balance notifications, like Scotia InfoAlerts, so you're alerted of all transactions made on your accounts. Follow the Security Centre's tips to keep your financial accounts protected from scams and abuse.
Vet hired help
Hire individuals who will put your care and needs first. You don't want to hire risky individuals who will misuse your home and funds. A best practice is to use a reputable agency.
What to do when you suspect financial fraud
There's no reason to feel embarrassed or ashamed if you suspect financial fraud. Fraud happens to millions of people of all ages each year. Call PhoneBusters toll-free at 1-888-495-8501 to get instant advice when you suspect fraud. They can help you better understand if your situation is abuse and what the next best step for you is.
You'll also want to take the following steps:
Call the police
Report financial abuse as soon as you recognize it. Many seniors are either afraid of blowing something out of proportion or of getting loved ones in trouble. Let an officer be the judge if the case needs to be pursued.
Your money, your rights
At the end of the day, your money is your property and no one is allowed to bully you or manipulate you into giving over financial control. If at any time, someone makes you feel financially uncomfortable or sceptical — whether they be a family member or a total stranger — report it and seek trusted help.
Your money, your rights
At the end of the day, your money is your property and no one is allowed to bully you or manipulate you into giving over financial control. If at any time, someone makes you feel financially uncomfortable or sceptical — whether they be a family member or a total stranger — report it and seek trusted help.
