Financial Abuse

Financial abuse: signs, risks & legal remedies

Financial abuse involves the misappropriation of another person's money or assets. While anyone can be a victim, it most often affects elderly or vulnerable individuals, particularly those experiencing cognitive decline or mental health challenges, who are more likely to be targeted and exploited.

A Growing Concern

Financial abuse is on the rise, intensified by the COVID-19 pandemic, which led more people than ever to depend on the support of others. Perpetrators are often those in a position of trust, such as family members, carers, neighbours, or friends.

Abuse With or Without Legal Authority

Financial abuse can occur both when a person holds a power of attorney and when they do not. In some cases, an attorney may misuse funds by mixing them with their own or by using the victim's money for personal gain.

Abusers often attempt to justify their actions by claiming the money was gifted to them or that the victim would have wanted them to have it. In cases where the abuser is a beneficiary of the victim’s will, they may rationalise their behaviour by suggesting they are simply receiving their inheritance in advance, sometimes driven by a fear that the older person may require increased care, thereby diminishing the estate.

Possible Indicators of Financial Abuse:

• Significant or multiple withdrawals from bank accounts.
• Unexplained payments or cheques.

• Transactions for unusual or unnecessary goods or services.
• Missing valuables or personal belongings.
• Sudden involvement of previously uninvolved individuals.
• Appearance of new or unexplained credit cards.
• Unpaid bills despite sufficient financial resources.
• Creation of a power of attorney without family knowledge.
• Preparation of a new will in secret, with third-party involvement.
• Increased social isolation or withdrawal from usual contacts.
• Noticeable signs of anxiety, fear or nervousness.
• Transfers or sales of property under suspicious circumstances.

How We Can Help

There are steps that can be taken to protect both the individual experiencing financial abuse and their assets. Our team has extensive experience in securing freezing injunctions and recovering misappropriated funds, whether through court proceedings or negotiated out-of-court settlements.

Our priority is to resolve matters as efficiently as possible. Wherever appropriate, we seek to avoid court proceedings by using Alternative Dispute Resolution (ADR), and we regularly achieve successful outcomes through correspondence or mediation.

If you’re concerned that someone you know may be experiencing financial exploitation, or if you’ve noticed a suspicious transfer or transaction, we encourage you to contact a member of our team without delay.