June 15 marks World Elder Abuse Awareness Day. Elder financial abuse is the most common form of elder abuse. It is defined as the unlawful or unauthorized use of an elderly person’s financial assets. It is also the act of pressuring an elder to authorize consent or use of their financial assets.
This month is important because it’s not just about safeguarding investments; it’s about protecting the vulnerable members of our society from falling victim to financial exploitation.
Understanding Elder Financial Abuse
Elder financial abuse is a pervasive and often hidden crime that targets older adults, exploiting their financial resources and trust. Perpetrators can be anyone from family members and caregivers to fraudulent financial advisors and strangers. The methods employed range from identity theft and fraudulent investment schemes to coercion and undue influence.
How to Recognize Elder Financial Abuse
To gain the trust of an older adult, a fraudster will often offer help or become a close friend. Learn more about the ‘trust trap’ and other investment fraud warning signs
Other common examples of elder financial abuse include:
- Theft of money, credit cards, bank cards, and/or possessions.
- Someone attempting to take over an older person’s financial affairs, including their investment portfolio.
- Someone threatening or pressuring an older person to give them money.
- Someone attempting to – or succeeding in – persuading, tricking, or threatening an older person to make changes to their will and/or power of attorney.
- Misuse of a power of attorney by doing things that are not in the best interests of the victim.
How to Protect Yourself and Your Loved Ones
Securities regulators across Canada have been actively implementing standards aimed at improving “Know Your Client” (KYC) rules and safeguarding investors. A key result of this work is the Trusted Contact Person initiative. Trusted contacts are selected and appointed by investors. In turn, financial advisors can connect with trusted contacts if they suspect their clients are making irrational decisions for any number of reasons including:
- injury, accident or fraud;
- diminished mental capacity; or
- age-related illnesses such as dementia.
The significance of appointing a Trusted Contact Person extends beyond older adults, as individuals of any age can potentially fall victim to financial exploitation or cognitive decline.
It’s important to note that the Trusted Contact Person is not the same as a power of attorney, which has the authority to make financial decisions on an investor’s behalf. Trusted contacts do not have any authority over accounts, cannot make decisions on an investor’s behalf, and will not be given access to detailed account information.
How to Tell Someone You’re Experiencing Financial Abuse
If you’re experiencing financial abuse, it’s important to find support and report it. Starting a conversation about abuse can feel unfamiliar and takes courage. These conversation points can help you:
- Start with, “I have a serious problem that has been happening for….”
- Describe what’s been happening;
- Describe how the abuse has made you feel;
- Talk about what types of support you need; and
- Determine where to get help
The Government of BC has an online resource that provides further tips to help you talk about elder financial abuse.
Where to Report Elder Financial Abuse in BC
If you suspect that someone may be a victim of investment fraud, report it to the BCSC. You can report a suspicious investment or a concern by filling out our online complaint form, emailing us, or you can call the BCSC Contact Centre at 604-899-6854 or 1-800-373-6393 (toll-free).
If you need to report other forms of financial abuse, the following resources are available for British Columbians. If you or someone you know is in immediate danger, call 9-1-1 or the emergency number in your community.
Seniors Abuse and Information Line (SAIL)
Call 604-437-1940 or 1-866-437-1940 (toll free)
SAIL is a province-wide, confidential service provided by Seniors First BC. You can speak to a trained professional about abuse or mistreatment and receive information and support regarding elder abuse.
Government of BC
The Government of BC has a webpage on elder abuse and where to get help. It also contains other resources, brochures, and fact sheets to provide information for protection from elder abuse or neglect.
The Public Guardian and Trustee (PGT)
The PGT protects the interest of British Columbians who do not have the legal capacity to protect their own interests, for contact information, click here.
Office of the Seniors Advocate (OSA)
Call 250-952-3181 or 1-877-952-3181 (toll free)
The OSA monitors seniors’ services and issues in BC, and makes recommendations to government and service providers in BC to address systemic issues.
Information and referral specialists at the OSA can help you find seniors programs and services.
Additional Resources
Canadian Centre for Elder Law
Government of Canada
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Contact Centre at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
InvestRight.org is the BCSC’s investor education website. Subscribe to receive email updates from BCSC InvestRight.
