The Financial Abuse of Older People A review from the literature HELPTHEAGED FINANCIAL EXCLUSION PROGRAMME The Financial Abuse of Older People A review from the literature carried out by the Centre for Policy on Ageing on behalf of Help the Aged Gillian Crosby Angela Clark Ruth Hayes Kate Jones Nat Lievesley with an introduction and recommendations by Help the Aged Help the Aged The research for this report was completed in March 2007 with additional material from the Comic Relief Study added during the summer. Help the Aged 207–221 Pentonville Road London N1 9UZ © Help the Aged 2008 All rights reserved Registered charity no 272786 Contents 1 Foreword 4 2 Summary 8 3 A review from the literature 11 3.1 Aims of the study 11 3.2 Methods used 11 3.3 Definitions of financial abuse 11 3.4 Pervasiveness of financial abuse 13 3.5 Interventions: recognising and preventing abuse 22 3.6 Advice, education and information for older people 27 3.7 The legal framework 28 3.8 The regulatory framework 30 References 32 1 Introduction Financial abuse is one of the most prevalent studies of the abuse of older people often forms of elder abuse. According to 2007 statistics include financial abuse, but focused studies from the Prevalence Survey Report by King’s on this issue are less common and there is no College, London and the National Centre for agreed definition of financial abuse. The seminar Social Research on behalf of Comic Relief and discussed the problems associated with financial the Department of Health, approximately 57,000 mismanagement or inappropriate arrangements people aged 66 and over had experienced for managing the financial affairs of an older financial abuse in the past year, making it the person, particularly in relation to mental capacity, second most prevalent type of mistreatment and the increased need for improved financial (after neglect) in the UK. This echoes previous literacy. research carried out by Action on Elder Abuse, which revealed that 20 per cent of calls to its This review was carried out over eight weeks in helpline were about financial abuse, making it the the spring of 2007. Within such a tight timescale, second most widespread type to be brought to and with the breadth and diversity of material the helpline’s attention. uncovered (some 1,000 references in total, in research studies, academic journals, websites, Financial exclusion, low levels of financial etc.), it would have been impossible to investigate capability, and cognitive impairment can mean everything in great depth. The review aims to that older people become dependent upon highlight the most important issues and sources others to manage their finances or to access of information and to complement previous their income or savings. While in the majority studies. of cases family, friends and professionals are trustworthy, calls to Action on Elder Abuse’s Help the Aged recommendations helpline show that the vulnerability of some Help the Aged believes that: older people, or their reliance on others for assistance, can easily be abused. • There is a need for much better multi-agency working at a national level. This should include Recent research carried out for Help the Aged a financial abuse taskforce, which would pull (Financial Exclusion among Older People, 2006) together the key organisations, including identified both the potential for financial abuse the Financial Services Authority, the police, and various indicators of abuse that are of major the legal professions, the British Banking concern. Help the Aged is extremely concerned Association, the Equality and Human Rights that the changes in the way we use money (e.g. Commission, the Criminal Records Bureau, greater use of internet and telephone banking, Trading Standards, the Commission for Social PIN numbers, and the withdrawal of cheques as Care Inspection, the Public Guardianship a means of payment) as a society could facilitate Office, the Department for Work and increased financial abuse of older people. The Pensions, the Department of Health and key Charity is considering ways of combating this. voluntary sector organisations. Help the Aged Older people might become at risk of abuse as proposes to create this taskforce. a result of having to depend on others to help them manage their money. The underlying issue • The Financial Abuse Taskforce should consider: is the fact that older people are not getting the • how to deliver, promote and sustain financial services or advice they need. preventive interventions; • how practitioners should and can be The lack of a clear understanding of financial encouraged to share experiences and abuse, among groups including government, the learning to promote good practice; financial services industry and other agencies, • how the UK can learn from the successes became evident from the presentations at of US initiatives to prevent financial a seminar for the key organisations with an abuse, such as the Daily Money Management interest in financial abuse hosted by Help the programmes (DMM) and training Aged on 26 October 2006. Definitions and programmes for bank officials; 4 Introduction • how local practical services and solutions • Advice, information and education are already in place to prevent financial abuse central to developing preventative strategies of older people can be encouraged, for financial abuse. Education is required promoted and sustained; to improve the financial capability of older • how the prevention of financial abuse people and people of all ages who may be should be ‘incorporated into an overall managing the assets of older people. The FSA, strategic approach to the ageing population’ the government and the banks must ensure based on the principle of older people as there is adequate education and advice to citizens, not just users of care services; reduce the risk of abuse. • how to raise awareness of financial abuse in all professional sectors, among older • Under the FSA’s overarching objective of people themselves and the public generally; fairness and its objectives for tackling financial • how training could be provided for crime, the FSA should actively engage in issues professionals who have contact with older relating to financial abuse and publish its own people – including nurses, doctors, bankers plans for prevention. and lawyers – to help them identify and respond to financial abuse; • Social exclusion can increase the potential for • what systems currently exist within the financial abuse. Strong local communities and financial services industry which would the effective delivery of services are crucial to help frontline staff identify, monitor and the well-being and quality of life of all older report potential elder abuse and whether people. Engagement of older people in local there is a case for improved practice; decision-making is important, in particular for • how advice is and will be provided to older those at risk of social exclusion. people in relation to issues relating to the lasting power of attorney; • Individuals of all ages should seek to register a • how adult protection committees can work lasting power of attorney. better to prevent financial abuse; • how older people can be made aware that • Wide-ranging research is needed on all they have suffered financial abuse and how aspects of financial abuse of older people. to tackle their reluctance to report. There is little information in the UK on preventive strategies involving the financial • In 2007 Ivan Lewis MP announced his services sector and older people. Research intention to revise the legal framework for is also needed on patterns of informal combating the abuse of vulnerable adults. management of resources and assets in old Any new framework should be enforceable age; the views of older people rather than of across the relevant public sector agencies, the professionals; and issues relating to banking police, financial services sector and health and to ethnic minorities’ experiences of bodies as well as social services, and should financial abuse. include a mandatory requirement for inter- agency co-operation. It should also provide Literature review for a protocol and referral path, making clear what should be done when abuse has been Financial exploitation has a devastating effect identified. on older people. Not only can a comfortable lifestyle disappear, but also older people do • Specific training in the investigation of all types not have the time or opportunity to recover of suspected abuse should be mandatory for financially. In addition, such a profoundly all those who would bear the responsibility disturbing experience can be a life-threatening for following up allegations of abuse. This event ‘characterised by fear, lack of trust and would ensure that any evidence that the abuse the onset, often, of acute and chronic anxiety’ took place could be identified and preserved (Graycar and James, 2000). for a possible prosecution. 5 The Financial Abuse of Older People The subject of financial abuse is not well for them to manage on their own. Their affairs understood, although there is a perception that may be additionally complicated by divorce, new older people, especially those with cognitive partners and step-children, etc. The Social Policy impairment, are often victims of this form of Research Unit at the University of York produced abuse. Empirical evidence of financial abuse is a scoping study in May 2006, Minding the Money: scarce. There is a dearth of up-to-date research in carers and the management of financial assets in the UK that focuses specifically on the financial later life (Arksey et al.) which examines the role abuse of older people, and so evidence is gleaned of informal carers in managing older people’s from other studies that come across it, or wider financial affairs: ‘The provision of assistance with studies of elder abuse. Through case studies managing finance and assets by relatives and and news reports many scenarios have been friends raises questions of probity and propriety.