Financial abuse poses a significant safeguarding challenge encountered by social services. This form of abuse can profoundly impact society’s most vulnerable individuals, and the circumstances involved can be highly intricate.
In January 2022, the Office of the Public Guardian revised its safeguarding policy, raising awareness about the risks associated with financial abuse. In this discussion, we delve into recognising the indicators and taking action if you suspect someone you care about is experiencing such abuse.
What is financial abuse?
Financial abuse manifests in various ways. Apart from overt acts like theft and fraud, it encompasses coercive behaviours linked to money, misappropriation of benefits and direct payments, and deliberate neglect of essential purchases to safeguard assets belonging to the vulnerable party.
Who is most at risk of being affected by financial abuse?
There are several significant risk factors that heighten the vulnerability of individuals to this type of abuse. Notably, the risk escalates with age, and elderly individuals constitute a substantial portion of victims in the UK. Moreover, individuals lacking mental capacity due to conditions like dementia, severe learning difficulties, brain injuries, or mental health illnesses are particularly susceptible.
Tragically, the perpetrators of such abuse are often those closest to the victims, including family members, carers, or individuals with Lasting Power of Attorney or deputyship, which complicates detection and intervention.
The OPG Safeguarding Policy includes a checklist of risk factors to consider:
- History of past abuse or suspected abuse involving the client
- Incidents of abuse within the client’s family involving other members
- Family tensions or conflicts
- client or donor is female and over 75 years old
- Presence of organic brain injury leading to lower mental function
- Cognitive impairment affecting memory, thinking, or decision-making abilities
- Physical, mental, or emotional impairments such as depression, recent bereavement, social isolation, living alone, or limited contact with family members
How many people in the UK are affected by financial abuse?
A 2020 report released by The Co-operative Bank and Refuge, the UK’s largest national domestic abuse charity, revealed that nearly two out of five UK adults (39%)—approximately 20 million people—have encountered economically abusive behaviour in a current or previous relationship. However, despite this prevalence, only 16% of individuals describe or recognise these experiences as abusive.
This underscores the critical need for frontline professionals dealing with vulnerable individuals to consistently monitor for warning signs.
What are the signs of financial abuse to look out for?
Financial abuse can be insidious and often challenging to detect. While intuition plays a significant role in uncovering cases, there are specific indicators to carefully watch for, including:
- Changes in living conditions
- Selling of possessions
- Inability to pay bills or unexplained financial difficulties
- Unauthorised withdrawals from bank accounts
- Loss of financial documents without explanation
- Isolation from family, friends, or social networks
- Increased spending by a carer on personal items like clothes, travel, or accommodation
- Sudden alterations to bank account activity or usage
- Addition of new authorised signers on account cards
- Unauthorised withdrawals from the adult at risk’s ATM card
- Changes in ATM card usage patterns (e.g., more frequent use or from unfamiliar locations)
- Unexpected modifications to wills or other financial documents
If any of these signs resonate with your situation and you suspect financial abuse, it’s crucial to report the case to the police. If the suspected abuser is a deputy or attorney, contact the Office of the Public Guardian (OPG) as well.
What steps does the OPG take when presented with concerns?
This information is detailed in the recently updated OPG Safeguarding Policy. The OPG safeguards individuals in England and Wales who may lack the mental capacity to make certain decisions regarding their health and finances. The OPG has a statutory duty to protect individuals lacking capacity from abuse, categorised under the new term “adults (or children) at risk,” as adopted by the updated Safeguarding Policy published on January 11, 2022. This term replaces the previous term, “vulnerable adult.”
Upon receiving a report, the OPG will investigate concerns and have the authority to access bank statements for the protected individual. If further action is necessary, and where applicable, the OPG may apply to the Court for the suspension, discharge, or replacement of the deputy/deputies and/or the suspension or removal of any existing enduring or lasting power of attorney. In many instances, the Court will appoint a professional deputy selected by the OPG—referred to as a panel deputy—to replace the previous deputy or attorney.
When does the Court of Protection become involved?
The Court of Protection is a specialised court that handles all matters concerning individuals who lack the capacity to make certain decisions. The Court appoints deputies to act in the best interests of these individuals.
In cases of reported financial abuse where action is deemed necessary, the court may determine that appointing a professional deputy is essential to providing financial oversight, protection, and investigation into the alleged abuse. This allows for appropriate action against the abuser to recover funds.
One category of deputyship is property and financial affairs, which involves managing tasks such as bill payments and pension organisation on behalf of individuals.
Both the court’s role and that of appointed deputies are crucial in addressing abuse and safeguarding vulnerable individuals, ensuring protection and striving to recover funds whenever possible.
