Financial abuse: Elderly often too scared or ashamed to report being a victim

Meth-addicted family members using elderly relatives like an “ATM” to fund their drug habit.

Desperate seniors arriving at social agencies straight from the hospital wearing a “dressing gown”' and with no money.

Elderly relatives guaranteeing their children or mokopuna’s loans and then having to take on the debt - or sell their home - when repayments aren’t made.

Bay of Plenty social agencies say these are just some examples of the financial abuse elders are enduring.

And it could be just scratching the surface.

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Te Tuinga Whanau Support Services executive director Tommy Wilson. Photo / File

According to the Ministry for Seniors, anecdotal studies show 96 per cent of cases go unreported as victims are reluctant to speak out due to the consequences for their abuser.

Te Tuinga Whānau Support Service Trust executive director Tommy Wilson said some elderly people were being used as “ATMs” by family members battling addictions.

“It’s really only been since the heightened immediacy of meth. Those who are addicted will do anything and sell anything to feed their addiction.”

He said those in their sunset years often wanted to help their children but this could cause flow-on financial effects. Some elderly had not been able to keep up with rent or mortgage payments.

“They’ve been forced to seek emergency housing with us. Some had nowhere to go and were straight out of the hospital... in their dressing gowns.”

Wilson said theft from the elderly was sad and unacceptable.

“But... you must come up with a solution or else we all drown in these misery stories.”

Te Tuinga Whānau had started “social surgery” with some of its elderly and Wilson said the key was to create a safe, non-judgmental environment to overcome the whakamā (shame) many elderly felt after being exploited financially.

The elderly were often too ashamed to report financial elder abuse. Photo / Alex Cairns

Bay Financial Mentors manager Shirley McCombe said some older clients were too “scared or embarrassed to speak up”.

“Parents want to support their children, and many will do this at the expense of their own wellbeing. We see clients who cannot afford food, rent, electricity etc because they have children and grandchildren living with them and not contributing.

”When a member of the family is also impacted by addiction, the problem is worse.”

Some seniors were afraid they would lose access to grandchildren if they spoke out.

Some clients had enrolled in the service’s Total Money Management programme, which ensured money went where it needed to go.

“We can pay their expenses directly, place money onto supermarket cards and provide them with some personal money each week. This takes the pressure off the individual but does not address the underlying issues.”

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McCombe said the service worked with social service organisations, with the client’s permission, as they often needed assistance from the police, addiction services and assistance with food security, housing, social work, mental health or counselling.

Office for Seniors director Diane Turner said it was believed up to 96 per cent of cases went unreported because victims were reluctant to speak out.

“Elder abuse is often hidden and hard to recognise. Compared to other forms of family violence, it’s more likely to involve verbal, psychological and financial abuse. That makes it all the more important for anyone else who sees something they are uncomfortable with to do something about it.”

Elder abuse was tied to societal attitudes towards older people, including ageism.

“We know some factors like advanced age increase the likelihood of abuse. The risk increases for people who are more dependent on others, people whose families have a history of family violence, and people who are isolated.”

Financial abuse was one of the most common forms of elder abuse.

“It can be as simple as stealing cash or withholding a person’s eftpos card so they can’t use it. More extreme cases involve making sudden or significant changes to a will or Enduring Power of Attorney. It doesn’t occur in isolation; people experiencing financial abuse often also experience psychological abuse, physical abuse, or neglect.

“There are signs people can look for, such as belongings or valuables going missing, overdue rent or bills, or large, unusual withdrawals of money from bank accounts. If people have concerns they should contact the police or the bank, and question what they’re seeing.”

Age Concern New Zealand chief executive Karen Billings-Jensen said psychological abuse was fundamental in almost all cases of elder abuse.

“Financial abuse occurs in more than a third of the cases whereas physical abuse or neglect are seen in less than a fifth of cases. This has been a pattern that has continued over the decades of our elder abuse work.”

More than three-quarters of the cases it dealt with involved relatives abusing elder relatives’ trust.

A police spokesperson said they were not aware of any active cases involving financial elder abuse. However, it was not common for these types of crimes to be reported.

“Some of our elderly people are our most vulnerable people in the community, and it is important that we all play our part in looking out for them, and speaking out for them.”

Rotorua Budget Advisory Service manager Pakanui Tuhura said most elderly he knew were “as sharp as a tack and spot scams immediately”.

However, even they could fall victim when they trusted the person running the scam.

“An old audit saying I find helpful is that fraud is born from motive and opportunity.”

Tuhura said the service had not seen any recent trends in elder abuse but advised elderly clients not to serve as guarantor for anyone.

“Unfortunately most act as guarantors for relationship or emotional reasons, not financial or monetary reasons. In the past, we have had some elderly clients who have gone guarantors for children or mokopuna using their homes as security.

“They have then had to take over the loan (or lose their home) when the younger people have defaulted on debt repayments.”

The Office for Seniors at a glance

• Raises awareness about elder abuse and the Elder Abuse Response Service.
• The Elder Abuse Response service includes a free national helpline that puts people in need in touch with providers in their area who can support them. This service is funded by the Ministry of Social Development.
• If anyone has concerns about how they or someone else is being treated, help is available through the free, confidential 24-hour helpline on 0800 32 668 65. They can also text 5032 or email support@elderabuse.nz