# Public Trust — Financial Elder Abuse: Know the Signs **Source:** https://www.publictrust.co.nz/resources/financial-elder-abuse-know-the-signs/ **Capture Date:** June 2026 **Topic:** Recognising and Responding to Financial Exploitation of Older People --- ## Overview Financial elder abuse is the **illegal or improper use** of an older person's funds, property, or resources. It is the most commonly reported form of elder abuse in New Zealand, involved in approximately **50% of all elder abuse cases**. > Public Trust: "Financial abuse often goes undetected because it's committed by someone the older person knows and trusts — most often a family member." --- ## The Scale of the Problem | Statistic | Detail | | ------------------------ | ------------------------------------------------------------------------------------------------------------- | | Prevalence | ~50% of all elder abuse cases involve a financial element | | Who is at risk | Older people (65+), especially those with cognitive decline, social isolation, or who rely on others for care | | Most common perpetrators | Family members (adult children most frequently), then friends, neighbours, and caregivers | | Gender | Women are disproportionately affected | | Under-reporting | Significantly — many cases never come to light | | Total estimated losses | Tens of millions of dollars per year in NZ | --- ## Common Types of Financial Elder Abuse ### 1. Enduring Power of Attorney (EPA) Misuse The **most common** form of financial elder abuse in New Zealand. An attorney appointed under an EPA uses their legal authority for personal gain rather than the older person's benefit. **Warning signs:** - Large or unusual withdrawals from the older person's accounts - Using the older person's money for the attorney's own expenses (holidays, shopping, bills) - Selling the older person's assets without their knowledge or consent - Transferring assets to the attorney or others - Refusing to provide accounts or records of transactions - Keeping the older person in the dark about their financial affairs - Making gifts or loans to themselves or others from the older person's funds - Changing beneficiary designations on insurance or superannuation > **Legal obligation:** An attorney under an EPA must act in the **best interests of the donor** (the older person). Using EPA powers for personal benefit is a **breach of duty** and can be reported to the Family Court or the Police. --- ### 2. Changed Wills and Inheritance Interference Pressuring or coercing an older person to change their Will to benefit the abuser. **Warning signs:** - A Will that inexplicably excludes close family members - A new Will made shortly after the older person became dependent on a caregiver - The older person being isolated from family before the Will changes - The older person being told "you don't need a lawyer" for the Will change - Disproportionate gifts to someone who has recently become close - Multiple Will changes in quick succession - The abuser being present during Will discussions with a lawyer > **Suspicious circumstances:** If a Will is prepared when the older person has diminished capacity, or under circumstances of undue influence, it may be challenged in court. --- ### 3. Strange or Unexplained Transactions Unexpected activity in an older person's financial accounts. **Warning signs:** - Large cash withdrawals inconsistent with normal patterns - Transfers to accounts the older person has no connection to - Maxing out credit cards or taking out new loans - Taking out loans or reverse mortgages that are not needed - Selling investments or cashing in KiwiSaver without good reason - Defaulting on bills or mortgage payments despite adequate funds - Opening joint accounts with someone new - Adding someone else's name to existing accounts - Unexplained changes to account signatories - Closing long-standing accounts and opening new ones with a different institution --- ### 4. New "Best Friends" and Opportunistic Relationships People who insinuate themselves into an older person's life with the intention of gaining access to their money. **Warning signs:** - A new friend, neighbour, or caregiver who takes an intense interest in the older person's finances - Someone who "helps" with banking and then gradually takes over - A person who discourages the older person from seeing family or old friends - Promises of care or companionship that then come with financial strings - The older person becoming secretive about a new relationship - Gifts or loans to a new person that seem out of character - The new person being present at all meetings with professionals (lawyers, bankers) - A person offering to "manage" the older person's affairs informally --- ### 5. Romance Scams Scammers target older people (especially those who are widowed or isolated) through dating sites, social media, or direct contact. **Warning signs:** - An online romantic partner who has never met in person but professes love - Requests for money for emergencies, travel, medical expenses, or business opportunities - Inconsistencies in the person's story - Pressure to keep the relationship secret - Requests for gift cards, wire transfers, or cryptocurrency - The person always having an excuse for why they can't meet - The older person becoming defensive when questioned about the relationship > **Public Trust warning:** Romance scams are increasingly sophisticated. Scammers may spend months building a relationship before asking for money. Losses can be devastating — life savings, homes, and superannuation. --- ### 6. Property Theft Taking physical possessions from the older person's home. **Warning signs:** - Missing jewellery, art, antiques, or other valuables - Items appearing in the homes of family members or caregivers - The older person saying things have been "lost" or "misplaced" frequently - Family members offering to "store" items that then disappear - Unexplained sales of household contents ### 7. Home Equity Theft Using the older person's home as collateral for loans, or transferring ownership without proper consent. **Warning signs:** - The older person no longer has documents showing ownership of their home - Unexpected mortgage or loan secured against the home - Family member moves in and then claims ownership - Pressure to sell the home and move in with family - The older person says they "gave" the house to someone but doesn't understand what that means --- ## Red Flags — A Quick Reference Checklist If you notice **any** of these signs, it may indicate financial elder abuse: ### Behavioural Red Flags (in the older person) - [ ] Unexplained anxiety or fear about money - [ ] Doesn't want to discuss finances or becomes evasive - [ ] Signs documents they clearly haven't read - [ ] Suddenly changes their Will, EPA, or beneficiary nominations - [ ] Gives away large sums or makes uncharacteristic purchases - [ ] Isolated from family or friends who previously were close ### Behavioural Red Flags (in others) - [ ] Someone takes over the older person's financial affairs without clear need - [ ] A family member or friend shows excessive interest in the older person's finances - [ ] The older person is never left alone with professionals or other family members - [ ] Someone refuses to provide financial records or accountings - [ ] Someone is living with the older person but not contributing financially - [ ] A caregiver or family member suddenly appears to be living beyond their means ### Financial Red Flags - [ ] Unexplained or unusual transactions on bank statements - [ ] ATM withdrawals the older person couldn't have made themselves - [ ] Bills unpaid despite sufficient funds - [ ] New loans, credit cards, or debt in the older person's name - [ ] Account signatories changed without the older person's understanding - [ ] House or assets transferred without clear legal process - [ ] Multiple or frequent changes to the Will or EPA --- ## What To Do If You Suspect Financial Elder Abuse ### Immediate Steps | Situation | Action | | ----------------------------------------- | --------------------------------------------------------------- | | **Immediate danger or criminal activity** | **Call 111** | | **Suspected abuse, not an emergency** | Report to **Age Concern** or **Elder Abuse Response Service** | | **Suspected EPA misuse** | Contact the **Family Court** or **Police** | | **Concerns about a Will** | Contact a **lawyer** or **Public Trust** | | **Suspected bank-related abuse** | Speak to the **bank manager** — banks have elder abuse policies | | **Online scam / romance scam** | Report to **Netsafe** (netsafe.org.nz / 0508 638 723) | ### Support Services | Service | Contact | What They Do | | -------------------------------- | ----------------------------- | -------------------------------------------------------- | | **Age Concern Helpline** | 0800 652 105 | Free, confidential support and advocacy | | **Elder Abuse Response Service** | 0800 32 668 65 | 24/7 response, safety planning, coordination | | **Public Trust** | 0800 371 471 | EPA services, estate planning, suspected abuse reporting | | **Community Law** | 0800 266 222 | Free legal advice | | **Police** | 105 (non-emergency) | Investigating crime | | **Netsafe** | 0508 638 723 / netsafe.org.nz | Online scams and digital harm | | **Bank** | Your bank's customer service | Freeze accounts, investigate transactions | --- ## How to Prevent Financial Elder Abuse ### For Older People 1. **Choose your EPA attorney carefully** — pick someone trustworthy who understands their duties 2. **Set up a trusted contact** with your bank who can flag unusual activity 3. **Keep control of your own accounts** — don't give anyone signing authority unless absolutely necessary 4. **Get independent legal advice** before changing your Will or EPA 5. **Stay socially connected** — isolation increases vulnerability 6. **Check your bank statements** regularly 7. **Be wary of unsolicited offers** of help with finances 8. **Never sign anything** under pressure — take it away and read it first 9. **Consider a trust structure** for larger asset protection 10. **Talk to Public Trust** about protective options ### For Family and Friends 1. **Stay in regular contact** — visit, call, video call 2. **Help monitor financial accounts** with the person's consent 3. **Watch for sudden changes** in relationships or financial behaviour 4. **Listen without judgment** — don't blame the older person 5. **Report concerns** — it's better to be wrong than to stay silent 6. **Document** what you observe — dates, conversations, transactions 7. **Encourage professional advice** — offer to go with them to a lawyer ### For Banks and Financial Institutions Most NZ banks now have: - **Elder abuse training** for frontline staff - **Transaction monitoring** systems for unusual activity - **Trusted contact person** schemes - **Policies to temporarily freeze** accounts if abuse is suspected - **Referral pathways** to Age Concern and EARS --- ## Public Trust Services Public Trust provides a range of services relevant to preventing and responding to financial elder abuse: | Service | Description | | ------------------------------ | -------------------------------------------------------- | | **Enduring Power of Attorney** | Professional EPA service — Public Trust acts as attorney | | **Estate Administration** | Independent administration protecting beneficiaries | | **Will Making** | Professional Will drafting and storage | | **Trust Management** | Asset protection and management | | **Financial Management** | For people who cannot manage their own affairs | | **Elder Abuse Awareness** | Resources, training, and partnerships | **Contact Public Trust:** - **Phone:** 0800 371 471 - **Website:** publictrust.co.nz - **In person:** Branch offices nationwide --- ## Legal Options Financial elder abuse may involve multiple areas of law: | Legal Area | What It Covers | | --------------------- | ---------------------------------------------------------------------------------- | | **Family Court** | EPA disputes, removal of attorney, orders to account | | **High Court** | Will challenges, undue influence claims | | **Criminal law** | Theft, fraud, obtaining by deception — Police prosecution | | **Civil law** | Recovery of money or property, compensation | | **Protection orders** | Under the Domestic Violence Act (financial abuse is a form of psychological abuse) | --- _This information is based on Public Trust's published resources. For the most current information, visit publictrust.co.nz or call 0800 371 471._