STEP warns of financial abuse rise

The campaign follows concerns from STEP members that financial abuse is widespread and increasing, often remaining hidden until after the victim has died. The charity Hourglass has seen a 49% rise in calls from older victims over the past year, with over £53 million in reported financial losses.

Research by STEP revealed that 70% of UK practitioners, including solicitors and estate planners, have observed actual or suspected financial abuse, while 59% of global practitioners raised concerns about a lack of public awareness. The survey also found that 40% of practitioners have seen an increase in financial abuse cases over the past two years, with 82% expecting higher demand for mental capacity advice.

Emily Deane TEP, Technical Counsel and Head of Government Affairs at STEP, said the financial abuse of older people, the vulnerable and those living with dementia is a hidden epidemic, and it’s on the rise. When you lose the ability to manage your own finances, you are increasingly reliant on others and at much greater risk of financial abuse. She explained that financial abuse can be hard to spot, and in some cases may be unintentional. A family member might not think they are doing anything wrong. They may mistakenly think they are entitled – but this is financial abuse. To better protect your loved ones, it’s vital for everyone to spot the signs and take action to stop abuse. Stay connected, listen and ask questions, and seek help if you suspect something isn't right.

STEP is urging people to visit www.step.org/spot-the-signs for information on identifying and preventing financial abuse. Common warning signs include sudden money disappearances, missing financial records, unexplained cash withdrawals, and an unusual interest in an individual’s assets. Other indicators include isolation from friends and family, unpaid bills despite financial arrangements, sudden asset transfers, and a decline in living standards.

Financial abuse involves the improper use of a person’s money or assets, often by someone they know or trust. Examples include undue influence to change a will, coercion in granting lasting power of attorney, and predatory marriage. A recent Hourglass study found that over 26% of people did not recognise forcing an older relative to change their will as abuse.

Veronica Gray, Deputy CEO and Director of Policy at Hourglass, said at Hourglass, we hear about the financial and emotional impact of abuse on vulnerable people every day through our helpline. We have sadly noted an increase in demand for our services, with a 49% increase in calls from older victims about financial abuse within the past year. This is why we are fully supportive of the aims of STEP’s “Spot the signs” campaign. We welcome this initiative and the campaign resources that will help people understand what financial abuse of older people can look like.

A global review by the World Health Organization estimated that one in 15 adults aged 60 and above experience financial abuse each year, though Hourglass believes this is a significant underestimation. As the global professional body for trust and estate practitioners, representing over 21,000 advisors, STEP continues to campaign for stronger financial abuse safeguards, including cross-border recognition of Lasting Powers of Attorney.