My aunt swindled $30K from my grandparents' savings. How to stop elder abuse when victims are afraid to act

Bria learned that her aunt — who previously lived with the elderly couple — defrauded them out of thousands of dollars and wracked up thousands more in credit card debt. They now receive calls from debt collectors, their credits cards have beex maxed out to the tune of $30,000 and their cable service has also been cut off.

The aunt has a history of financial issues. She once borrowed money from Bria’s parents, which she never paid back. Her grandparents admitted that her aunt handled their bills while she lived with them, but they’ve been hesitant to confront her or report any potential crimes to the police.

Now, Bria is searching for answers. While this scenario is hypothetical, it's something that many Canadian seniors may unfortunately experience, so it's best to stay vigilant. Here are some ways to spot financial abuse, along with steps you can take to address and prevent it.

Financial abuse of older adults

Unfortunately, the situation Bria’s grandparents are in is surprisingly common. Financial abuse of older adults is a serious issue. While financial fraud — such as when scammers try to steal money with phishing schemes and phone calls — is committed by strangers, financial abuse is perpetrated by people you know.

A 2015 national study on the prevalence of elder abuse in Canada found 7.5% of older adults experienced some form of mistreatment in the prior year, including physical, sexual, psychological and financial (1).

Unfortunately little has changed since that time: Of these abuses, financial abuse was the second-most prevalent ahead of psychological abuse at 1.4%, according to a 2023 Elder Abuse Report (2). Statistics Canada cited how the 2023 senior population in Canada was an estimated 7.6 million people, meaning this equates to approximately 106,400 people over 65 experiencing financial abuse (3).

What does financial abuse look like?

Financial abuse can come in many forms: power of attorney abuse, using credit or debit cards without permission, forgery, extortion and theft by someone you trust.

If you suspect a relative is a victim of financial abuse, a red flag to watch out for is if your communication with this family member has become limited, especially if another caregiver is telling you not to visit.

Other warning signs can include unannounced changes to an estate plan, expensive debit or credit charges, missing jewelry or other high-value items, and cheques being signed when your family member didn’t have an ability to write them.

What to do if you suspect elder financial abuse

Financial abuse can be a high-conflict situation if the perpetrator is a family member. But a wise first step to take is telling the victim that it isn’t their fault. Seek out legal advice even though it may feel like a difficult thing to do — protecting your family member from further victimization should be top priority.

Bria should gather all the documentation of the suspected financial abuse. She may also want to pull credit reports to make sure no other credit cards or loans were taken out in her grandparents’ names. Consider reporting evidence of fraud to the credit bureaus right away.

If an older adult in your family is no longer able to independently manage their finances, like Bria’s grandparents, it may be necessary to get a financial power of attorney. Since Bria’s grandparents are also facing declining health, a medical power of attorney — one that can make medical decisions for them — might also be a good step.

Bria’s grandparents might be wary of alerting law enforcement, since a family member is involved in the potential crime, but financial abuse of older adults is exactly that: a serious crime.

How can you protect yourself and tackle debt

While it’s impossible to anticipate future scenarios where you might be the victim of fraud or financial abuse, there are precautions you can take to protect yourself.