Media Release

Fraud against the elderly

Media release from Senator, the Hon Amanda Vanstone, Minister for Justice and Customs

30 December 1999

"All of us need to take an active role in protecting older Australians from crime", Minister for Justice and Customs, Senator Amanda Vanstone, said today.

"We need to be aware that fraud against the elderly is a very serious crime," Senator Vanstone said.

"Older people are more likely to be victims of financial abuse like fraud and commercial exploitation than predatory crime like robbery and assault."

These are the findings of a new report, Substitute Decision Making and Older People, released today by the Australian Institute of Criminology.

"The risks for older people are obvious. Many older people are asset rich, but rely on relatives or professionals to manage their financial affairs."

"Retirement planning has become more and more complex. Legislative solutions that allow other people to make financial decisions for us are also complex."

"It seems that many older people and their families are confused about legal documents like an Enduring Power of Attorney."

"Many older people simply trust their families to act in their best interests, and do not bother to keep a detailed understanding of their financial affairs. That's fine until something goes wrong."

"Paradoxically, arrangements to help an older person manage their finances, like an Enduring Power of Attorney, may also provide opportunities for the financial abuse of older people."

"A recent FBI paper suggests that Power of Attorney was the most abused legal document in America."

"Older people will continue to need legal solutions which allow other people to make financial decisions for them."

"As the International Year of Older Persons draws to a close, we all need to remember to be aware that fraud and financial abuse can happen to older people."

"The best protection for older people are friends, neighbours, carers, relatives and even bank tellers who can all play a role in alerting the police if they suspect that something is wrong."

Case studies

Mrs S lives with her son and daughter-in-law. She felt she could not trust her son to put her interests first, as she believes his wife may negatively influence him against her. She is very independent, has a strong desire to 'hold on as long as I can' to her decision-making capacities and believes that 'what will be will be'. She is convinced that she will be able to decide when she is no longer capable of managing her own affairs and, at that point, will get an Enduring Power of Attorney and pass the responsibility on to her son. She does not appear to consider the possibility that this perceived window of opportunity might not appear.

Mrs B (physically frail, aged 89 years) is not sure of the relevant legislation. She signed a letter for the bank, which enables her daughter to collect her pension and do her banking each week. Mrs B did not know if she had signed an Enduring Power of Attorney. She trusts her family to 'do the right thing'.

A nursing home resident who was widowed and childless said that her solicitor managed her affairs. She had no knowledge of Enduring Power of Attorney or Power of Attorney and did not know if her solicitor had made these arrangements. She knew nothing of the details of the decisions made by him but was completely happy with the arrangement. 'I don't know anything about it - I just know that I am taken care of; I'm in very good hands'.

One woman reported that she and her sister obtained an Enduring Power of Attorney for their father after consultation with a Justice of the Peace (JP). Their father had suffered from dementia for several years and would not have been capable of reading or understanding the documents. They signed the documents, which were witnessed by a JP. Their father's bank recognised their legal power to manage their father's finances. In this case, the participant wanted to 'get around the legislation' and was able to do so with the assistance of a JP. The carer concerned felt that their total commitment to the care of their father justified their actions.

References

• Download paper: Substitute decision making and older people