Elder Abuse • Financial Exploitation

Your Elderly Parent Is Giving Money Away. Is It a Scam, Manipulation, or Something Else?

You notice $5,000 missing from your mother's savings account. She says she sent it to a friend. When you press, she becomes defensive and changes the subject. Something is wrong — but what? Is she being scammed? Is someone manipulating her? Or is she making a choice you simply disagree with?

Financial exploitation is the most common form of elder abuse in Australia. Elderly Australians lose over $180 million annually to scams alone — and that figure only counts what is reported. The true losses, including financial abuse by family members and carers, are estimated to be many times higher. This guide covers the warning signs, the most common scams targeting elderly Australians, the uncomfortable reality of financial abuse by family, your legal options, banking safeguards, and how regular daily contact can detect the early signs of exploitation before life savings are lost.

$180M+

Lost by elderly Australians to scams annually

#1 Form

Financial abuse is the most common elder abuse

70%

Of financial elder abuse is perpetrated by family

1 in 6

Elderly Australians experience some form of abuse

Common Scams Targeting Elderly Australians

Scam Type	How It Works	Red Flags
Romance Scam	Scammer creates a fake profile on a dating site or social media. Builds an emotional relationship over weeks or months. Then asks for money — medical emergency, stuck overseas, business investment.	Never met in person. Always has excuses for not video calling. Asks for money via wire transfer or gift cards.
Grandparent Scam	Caller pretends to be a grandchild in trouble — arrested, in hospital, in a car accident. Asks for immediate money transfer. Often uses AI voice cloning of the real grandchild's voice.	“Don't tell Mum and Dad.” Extreme urgency. Requests unusual payment methods.
Tech Support Scam	Caller claims to be from Microsoft, Telstra, or NBN. Says the computer has a virus. Gains remote access, then either installs malware or demands payment for “fixing” the non-existent problem.	Unsolicited call about computer problems. Requests remote access. Demands payment in gift cards.
Investment Scam	Unsolicited contact about a “guaranteed” investment opportunity. May use real company names and professional-looking websites. Often targets retirees with self-managed super funds.	Guaranteed returns. Pressure to act quickly. Crypto or offshore accounts. Unlicensed operators.
Government Impersonation	Caller claims to be from the ATO, Centrelink, or Medicare. Says there is a fine, overpayment, or legal issue. Demands immediate payment to avoid arrest or prosecution.	Government agencies never threaten arrest by phone. Never demand payment via gift cards or crypto.
Lottery / Prize Scam	Letter, email, or call saying they've won a prize. Must pay a “release fee” or “tax” to collect the winnings. Fees escalate with each payment.	You can't win a lottery you didn't enter. Real lotteries never require upfront payment.
Door-to-Door Scam	Tradesperson offers to fix the roof, driveway, or garden at a “discounted rate.” Takes upfront payment. Work is never completed or is dangerously substandard.	Unsolicited offer. Cash payment demanded upfront. No written quote or ABN provided.

Financial Abuse by Family and Carers: The Uncomfortable Truth

The hardest part of financial exploitation to confront is that in approximately 70% of cases, the perpetrator is a family member. Sons and daughters, grandchildren, siblings, and in-laws are responsible for the majority of financial elder abuse in Australia.

Common Patterns of Family Financial Abuse

• Using Enduring Power of Attorney to transfer assets to themselves
• “Borrowing” money that is never repaid
• Moving into the elderly parent's home and refusing to pay rent or contribute to costs
• Pressuring a parent to change their will or give an early inheritance
• Using the parent's credit card or bank card without permission
• Isolating the parent from other family members to prevent discovery
• Threatening to withdraw care or contact unless money is provided
• Selling the parent's property or possessions without informed consent

Why Elderly People Don't Report Family Abuse

The elderly person often knows what is happening but feels powerless to stop it. They fear losing the relationship with their child. They fear retribution — the abuser may be their primary carer. They feel shame that their own child would exploit them. They may depend on the abuser for daily care, transport, or social contact. Some believe that giving money to family is simply what parents do, even when it leaves them unable to pay their own bills.

How to Have the Conversation

Confronting a parent about financial exploitation requires extraordinary sensitivity. Done wrong, they will shut down, defend the abuser, and cut you off from the information you need.

Do: Express Concern, Not Accusation

“I've noticed some changes in your finances and I'm worried about you. Can we talk about what's been happening?” Not: “Someone is stealing your money and you need to stop them.”

Do: Ask Open Questions

“Have you been getting any unusual phone calls lately?” “Has anyone asked you to help them with money?” “Are you feeling pressured by anyone?”

Do: Validate Their Feelings

If they are being romance-scammed, they may genuinely believe they are in a relationship. Mocking or dismissing their feelings will end the conversation. Acknowledge the emotions while gently introducing doubt about the other person's intentions.

Don't: Take Over Their Finances Without Consent

Unless your parent has lost capacity, they have the right to spend their money as they choose — even if you disagree. The line between financial exploitation (which is a crime) and a bad financial decision (which is a right) is one of the hardest things to navigate in elder care.

Legal Protections and Where to Report

Body	Contact	When to Contact
National Elder Abuse Phone Line	1800 353 374	Suspected abuse by family, carers, or others. Confidential. Free.
Scamwatch (ACCC)	scamwatch.gov.au	Report scams. Get advice on recovery. Alert others to active scams.
Police	131 444 (non-emergency) or 000	If a crime has been committed (theft, fraud, exploitation).
VCAT / Guardianship Tribunal	Varies by state	To appoint a financial administrator if parent has lost capacity and is being exploited.
ASIC	1300 300 630	Investment scams, unlicensed financial advisers, superannuation fraud.
Your Parent's Bank	Branch or phone	Request a freeze on suspicious transactions. All major banks now have dedicated elder abuse teams.

Banking Safeguards Available Now

All four major Australian banks (CBA, NAB, ANZ, Westpac) and most regional banks now offer elder financial abuse protections:

• Transaction alerts: Notify a trusted person when unusual transactions occur
• Spending limits: Set daily or weekly withdrawal limits on accounts
• Third-party monitoring: A nominated person can view (but not control) account activity
• Scam detection: AI-based systems that flag suspicious payment patterns
• Safe word: Staff trained to ask for a safe word if they suspect a customer is being coerced during a transaction
• Dedicated elder abuse teams: Specialist staff who can investigate and intervene

Enduring Power of Attorney: Safeguard or Weapon?

An Enduring Power of Attorney (EPOA) for financial matters is one of the most important documents an elderly person can have — and one of the most commonly misused. The EPOA gives someone the legal authority to manage finances on behalf of the elderly person if they lose capacity.

Safeguards to Build In

✓ Appoint two attorneys (requires both to agree on transactions)
✓ Include specific limitations (e.g., cannot sell property, cannot gift more than $X)
✓ Require the attorney to keep financial records
✓ Appoint a different person as guardian (health decisions) vs attorney (financial)
✓ Have a solicitor prepare the document (not a DIY kit)

Warning Signs of EPOA Misuse

⚠ Attorney making gifts to themselves from parent's funds
⚠ Attorney refusing to show financial records to other family
⚠ Attorney changing the parent's will or estate plan
⚠ Attorney selling the parent's property or assets
⚠ Attorney isolating the parent from other family members

How Daily Calls Detect Financial Exploitation Early

Financial exploitation rarely happens in a single event. It builds over weeks and months. An elderly person being scammed or financially abused shows behavioural changes that are detectable through regular conversation — changes that family members who only visit weekly or fortnightly may not notice.

What KindlyCall's Daily Calls Can Detect

Unusual stress or anxiety

Scam victims often show escalating anxiety as demands for money increase

Mentions of new friends or partners

Romance scam relationships are often mentioned with unusual enthusiasm

Requests for money or financial confusion

Asking about bank transactions, confused about account balances

Secretiveness about visitors or calls

Being vague about who they spoke to or who visited

Mood changes after phone calls

Scam calls often leave elderly people agitated, confused, or fearful

Expressing fear of a specific person

Anxiety about a particular family member, carer, or “friend”

The daily call creates a baseline of your parent's normal emotional state. When that baseline shifts — increased anxiety, evasiveness, mentions of money trouble, or unusual enthusiasm about a new “friend” — the system flags it for family review. Early detection of financial exploitation can save tens or hundreds of thousands of dollars. More importantly, it protects your parent from the devastating emotional impact of discovering they have been deceived by someone they trusted.

Recovery After a Scam

If your parent has already been scammed, the immediate priorities are stopping further losses, reporting the scam, and supporting your parent emotionally.

1

Stop Further Payments Immediately

Contact the bank to freeze the account or block further transactions to the scammer. If a wire transfer was recent (within 24 hours), the bank may be able to reverse it. Cancel any recurring payments that have been set up.

2

Report to Scamwatch and Police

Report online at scamwatch.gov.au and file a police report (131 444). Even if recovery is unlikely, reports help authorities track and shut down scam networks. For investment scams, also report to ASIC (1300 300 630).

3

Secure All Accounts

Change passwords on all email and banking accounts. If the scammer had remote access to a computer (tech support scam), have it professionally cleaned. Enable two-factor authentication on all accounts. Check whether personal identity documents have been compromised.

4

Support Your Parent Emotionally

Scam victims experience intense shame, guilt, and embarrassment. Do not blame them. Do not say “I told you so.” The scammers are professionals who exploit fundamental human needs — loneliness, trust, fear of authority. Your parent is a victim, not a fool. Consider counselling through the GP Mental Health Care Plan.

5

Beware of Recovery Scams

Scammers often target previous victims a second time, posing as recovery services, lawyers, or government agencies who can “get your money back” for a fee. Any unsolicited offer to help recover scam losses is itself a scam. Report these to Scamwatch immediately.