Millions ripped off from the elderly
Results of the first six months after an Elderly Abuse Hotline was launched in Victoria show that the greatest complaint is financial abuse. Two hundred callers a week have phoned in, more than 60 per cent to complain about psychological and financial abuse.
Dr Gerry Naughtin, CEO of Mind Australia and a lecturer in the School of Social Work and Policy, has been a major instigator behind the move to bring the concerns of the elderly into the public domain.
‘Many people tolerate abuse because they don’t think there are any options,’ Dr Naughtin says. He estimates that one in 20 people over 65 years of age and one in 15 above 75 are subject to some form of abuse in Australia.
On the financial front, a study in 2006 put a figure of $9 billion a year on the inter-generational transfer of assets, an area prone to manipulation and intrigue. By 2026 this is expected to grow to $70 billion.
‘Historically older people didn’t have a lot of assets to pinch,’ Dr Naughtin says. ‘People are living longer now and there is quite a different and more complex system of financial transfers.’
There are horror stories of families refusing to pay for incontinence pads for their parents in care through to gaining control of bank accounts. Some people’s homes have been sold off without their consent.
Dr Naughtin identifies three significant factors in the financial abuse of elderly by their families: mental health, gambling addiction and drugs. Declining cognitive capacity also makes the elderly more vulnerable.
‘Society works on the basis of trust. This works for 95 per cent of people. Financial planning in older age has become so complex that it is prone to manipulation. People ingratiate themselves to get into a position of trust and then take over assets. Often the elderly don’t want to talk about these issues.’
Dr Naughtin says that the banking industry has a larger role to play in the control of financial abuse. He cites the story of a man in his seventies who walked into the local branch of his bank with a stranger and asked to withdraw a million dollars in cash from his account. Bank staff were suspicious and the manager interviewed the man. In the end the manager deemed that he could not intervene. The elderly man never saw his money again.
‘The Australian Bankers’ Association is looking at the issue,’ Dr Naughtin says. ‘When there are unusual transactions staff need to investigate. They have the right to talk to family members so they can build in protection for those over 65.’
Dr Naughtin said researchers are trying to build a national picture of the problem. The Queensland Hotline estimated that a total of $95 million was misappropriated during a six month period. The figures have not yet been collated for Victoria.