Online banking putting elderly at risk

Many elders struggle with using the internet.

Technological advancements are putting the elderly at more risk of financial abuse, Banking Ombudsman Deborah Battell says.

Elder financial abuse would only increase as the population aged, more people developed dementia and banking became more digital, she said.

Last week, Bay of Plenty Police were alerted to a new scam that involved a Tauranga woman being phoned about the computer package she was using.

"The caller had a strong accent and was very difficult to hear. She became suspicious and rightly hung up," police said.

"There are a number of telephone computer scams that occur from time to time. Often the caller will advise there is a virus or a security issue and offer to fix it by accessing your computer remotely."

Police advised people to never provide computer details to strangers over the phone.

Banking Ombudsman Deborah Battell said this week - Elder Abuse Awareness Week - was a good time for the elderly, their families and banks to check what they can do to detect and prevent financial abuse, whether by fraudsters or family members.

"While we observe banks looking out for the signs and reporting cases to third parties in some circumstances, they will need to be even more vigilant in future. And the elderly themselves, as well as their families, will also need to be more active in detecting and preventing financial abuse," she said.

It was not unusual for financial abuse to be evident in complaints to the Banking Ombudsman Scheme, she said.

"Some elderly people have told me that banking is changing too quickly for them - they simply can't keep up.

"They're having difficulties with internet and mobile banking, and are afraid of losing the ability to use cheques and receive paper statements.

"They're also afraid of losing control of their finances - new technologies put older people at even greater risk because they depend on others for help," she said.

"Older people are particularly vulnerable to financial abuse because they often have money or assets, may be isolated or have disabilities, including dementia, and because they are less likely to report abuse or take action against the perpetrators." Grey Power Tauranga president Christina Humphreys said it came down to experience with computers and the internet. Many are not computer savvy, she said.

Tips to stay safe

* Keep debit and credit cards in a safe place
* Don't give out PINs - banks never ask customers to disclose their PIN details
* Keep bank PINs unique - don't use the same PIN for anything else
* Make sure accounts with large amounts of money cannot be accessed using an EFTPOS/ATM card
* Don't open emails from people you don't know
* Don't forward money to strangers
* Never allow yourself to be pressured into financial decisions
* Monitor accounts regularly
* Report any concerns to your bank