Elder Abuse in Disguise: Could Someone Be Taking Advantage of Your Loved One?
Financial elder abuse is growing in Australia — and it’s often closer to home than you’d think.
In Australia, elder abuse is often misunderstood as purely physical or emotional mistreatment. But one of the most insidious — and frequently overlooked — forms of abuse is financial. It often goes undetected for months, even years, and heartbreakingly, it’s often carried out by the very people trusted to protect and care for the elderly.
With an ageing population in Australia, financial-based elder abuse is becoming increasingly prevalent as more older Australians accumulate wealth in the form of superannuation, real estate, and savings — making them prime targets for opportunistic abuse. At the same time, rising living costs, housing stress, and intergenerational financial pressures have led some family members to misusing an elderly relative’s funds for their own benefit. The increased use of informal caregiving arrangements and enduring powers of attorney, often without adequate oversight, also creates situations where control over finances can be easily exploited without the older person fully understanding or consenting.
What is Financial Elder Abuse?
Financial elder abuse refers to the misuse or theft of an older person’s money, property, or assets, often without their full understanding or consent. It can occur under the guise of ‘helping out’ — but the end result is often the same: an erosion of the person’s financial independence, dignity, and safety.
Disturbingly, the perpetrator is often someone the older person knows — a relative, neighbour, friend, or even a carer. In many cases, older people are reluctant to speak up out of embarrassment, fear of retaliation, or simply because they don’t realise they’re being taken advantage of.
Common Warning Signs
Financial abuse doesn’t always look obvious. Here are some signs that may indicate something is wrong:
Unexpected changes to legal documents – including new wills, superannuation beneficiaries or enduring powers of attorney, especially if they favour one person without clear reason.
Unexplained withdrawals or purchases – such as large cash withdrawals, unusual spending on credit cards, or unfamiliar direct debits.
Lack of access to money – the older person may suddenly say they “can’t afford” everyday expenses, despite having had sufficient funds previously.
Increased isolation – they might stop attending regular social activities or seem withdrawn, especially after a new person enters their life or moves into their home.
Reluctance to discuss finances – they may appear confused, anxious or evasive when asked about money matters.
A Real-World Example
We recently advised an elderly client who had signed a financial power of attorney in favour of her adult daughter. Over time, the daughter began using the authority to pay her own bills, withdraw cash, and sell off personal items — all without her mother’s knowledge. What started as a request to "help out with the banking" became a complete loss of financial autonomy.
The client only realised something was wrong when she was contacted about overdue utility bills. With legal intervention, we were able to revoke the power of attorney and begin proceedings to recover some of the misused funds. But, as is often the case, much of the financial and emotional damage could not be undone.
How to Take Action
If you suspect someone is taking financial advantage of an older person, there are steps you can take:
Have a respectful conversation – Ask the older person gently if they feel in control of their finances and whether anyone is pressuring them.
Get legal advice early – A solicitor can assist in reviewing financial arrangements, revoking powers of attorney where appropriate, and initiating protective actions.
Know the support services available – There are government bodies and elder advocacy services that can help investigate abuse and support the person involved.
Prevention is Always Better Than Cure
One of the best ways to guard against future abuse is by ensuring legal documents are clear, current, and professionally prepared. Appointing trustworthy attorneys and including safeguards — such as requiring joint decision-making or independent oversight — can make a world of difference.
If you're worried about someone close to you, or if you want to put your own safeguards in place, we’re here to help. We provide practical, confidential advice to help protect what matters most.
Please note, this article is general in nature and does not take into account your personal situation or circumstances. For further information please contact Kenney Legal at info@kenneylegal.com.au or contact us via our social media networks.