David Jones, Director, Hugh Jones Solicitors
Financial abuse is a rapidly growing issue within society, and one of the most common safeguarding challenges in the UK.
Whilst financial abuse can happen to a person of any age, older people and those with diminished capacity are particularly vulnerable. Knowing the tell-tale signs that someone is being financially abused can therefore allow for earlier intervention, as financial abuse frequently goes unreported, making it hard for agencies to intercede on behalf of the victim.
How widespread is financial abuse?
One charity working to prevent the abuse of older people – Hourglass – observed a 73% rise in calls relating to financial abuse in 2022, compared to the previous year. Additionally, research by Aviva released in early 2023 indicated that two in five Britons had experienced some form of economic or financial abuse, with 39% of these noting that the abuse was perpetrated by a spouse or partner. Wider family members, such as a parent or sibling, were involved in 23% of cases involving financial abuse.
What does financial abuse involve?
The Care Act 2014 describes ‘financial abuse’ as a type of abuse which includes having money or other property stolen, being defrauded, being put under pressure in relation to money or other property and having money or other property misused.
Financial abuse can therefore take many forms and may be identified as:
- Taking money directly from the victim
- Encouraging the victim to make payments which aren’t necessary
- Coercing significant changes to a person’s will for personal gain
- Controlling a person’s access to their own money
- Restricting what a person may and may not spend their money on.
What are the signs someone is being financially abused
Those who are being financially abused are often scared to speak up about their situation. This may be because they have been frightened by their abuser, fear that they may not be believed if they did confide in someone, or simply that they do not have the mental capacity to realise they are a victim of financial abuse.
Care teams can play a key role in spotting the signs of financial abuse and some of the most common signs of abuse to look out for include:
- A sudden change in living conditions
- A Increased isolation from family and friends
- Becoming withdrawn
- Money going missing from bank accounts without a credible explanation
- Changes in money management patterns, such as starting to use cheques or withdrawing large sums of cash.
What to do if you suspect financial abuse
It’s important to act if you suspect a person is being financially abused. The first step is to try and ascertain what’s happening. Try to speak to the victim in a safe space, allowing them time to explain what’s happening. You can ask to see bank statements to spot irregularities or ask wider family and friends if they have observed a change.
Which agencies can help?
Financial abuse can be reported to the police and adult social services, but also to the Office of the Public Guardian. This body protects people in England and Wales who lack the capacity to make certain financial decisions for themselves and are the subject of a Deputyship Order or have granted a Power of Attorney.
If there are concerns about a deputy or attorney, then the Office of the Public Guardian has a duty to investigate and any concerns should first be reported to them. The Court of Protection can then take steps to limit or remove the powers of an existing deputy or attorney, depending on the Office of the Public Guardian’s findings.
The important thing to remember is to act quickly, gather as much information as possible and be alert to the signs.
Hugh Jones Solicitors is a specialist Court of Protection solicitors firm based in Manchester.
Image depicts David Jones, Director, Hugh Jones Solicitors