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Many of the effects of the coronavirus pandemic are immediate and obvious. Others are already clearly expected to become apparent over the medium to longer term. Some repercussions however will be insidious. The stringent self-isolation that those most at risk from Covid-19, including those over seventy, are being urged to adopt has instant negative consequences for the older person. However, it may also have more subtle and sinister ramifications for their financial and emotional welfare, in particular the likelihood that they will fall victim to financial abuse.

If there is anything positive that has resulted from the current crisis, then surely it is the coming together of communities to support those identified as being most at risk. Many, many people are offering to go to the help of neighbours, colleagues, even strangers, and one must certainly not begin questioning the motivations of all of these good Samaritans. However, the possibility that in some instances, harm may potentially result cannot be totally discounted – not necessarily because the helper purposefully sets out to take advantage of a vulnerable neighbour or relative, but because they themselves are under considerable financial strain, and temptation may just prove too much. If there are simple steps that can be taken to help guard against this risk, then they should be considered. It is always easier to prevent a problem arising in the first place than it is to try and put things right once they have gone wrong.

What is financial abuse?

Financial abuse is defined by section 42(3) of the Care Act 2014 (the 2014 Act) as:

- having money or other property stolen;

- being defrauded;

- being put under pressure in relation to money or other property; or,

- having money or other property misused.

What increased risk does social isolation present?

There has already been a great deal of discussion about the immediate impact of the self-isolation being urged upon older members of the population: loneliness, already a serious social issue for this group, will increase. Why might it also increase the risk of financial abuse taking place? Social isolation and loneliness are common characteristics of those who fall victim to financial abuse. In the longer term therefore it seems logical that a greater degree of isolation and loneliness in older members of society will see a correlating rise in financial abuse. In the immediate term in the present situation, the most obvious risks lie in the acute vulnerability of the older person leading them to take steps they might not otherwise consider e.g.: giving cash and bank cards to those who have offered to help with daily tasks such as shopping or picking up prescriptions; nominating a person to collect a state pension; and, adding signatories to and requesting second cards for bank accounts.

Precautions

There are easy steps that can be taken to protect both the vulnerable person who is self-isolating, and the person volunteering to help them. Suggestions include:

- Obtaining a receipt for shopping trips (and taking copies of receipts).

- Printing out an advice slip when withdrawing cash and providing it to the person who is self-isolating (and again, taking copies).

- Handing back bank cards following each use, rather than hanging onto them, even if expecting to run further errands the next day.

- Finding out whether the bank or other card provider is able to set up features such as limiting the amount that can be withdrawn or spent at any one time, or setting up text alerts when cards are used.

- Letting other family members and friends know when these informal arrangements are being made.

- Making sure to keep in touch with family, friends by telephone. The Campaign to End Loneliness explains that this is especially important during self-isolation, and explain that technology can help with this enormously. They suggest calling friends, colleagues and relatives regularly on the phone to see how they are, creating instant messaging groups and using social media such as Facebook and Twitter and even Zoom. Consider whether spare tablet computers and smartphones can be given or lent to friends or relatives, if they feel comfortable in using them. For the older person who is not confident in using modern communication technology, once the period of self-isolation is at an end, there are many charities, such as Age UK, that can offer training free of charge or at reduced rates, which should be taken advantage of.

In general, taking more formal steps such as setting up a joint bank account, adding a name to an existing bank account, or appointing a nominee for the purposes of a state pension or benefits, need thinking about very carefully. Certainly in the case of joint bank accounts, adding someone’s name to a bank account has the potential to create confusion as to whether a gift was intended, either of the whole or part of the funds in the account. This in turn has implications for the devolution of assets upon death (jointly-owned assets pass automatically by survivorship, outside of a will) and for inheritance tax. Fathers adding the name of a child, or fiancée or wife, to a bank account need to be particularly careful, as in the absence of any evidence to the contrary, the presumption of advancement may mean that it is presumed that a gift was intended.

If a greater degree of help is needed than the informal arrangements described above permit, then advice from a solicitor should be sought. There are very likely to be other ways of achieving the desired outcomes, such as the granting of a Property and Financial Affairs Lasting Power of Attorney (LPA) that avoid undesirable consequences and can have tailored safeguards built into them. It is not a requirement that someone wanting to make an LPA should use a solicitor. LPA forms are available on the website of the Office of the Public Guardian (OPG), and contain guidance to help applicants fill them out. The OPG also has a helpline that applicants can phone if they need assistance or advice*. However, LPAs are powerful documents, and in general it is advisable to seek advice from a solicitor, to ensure that the document captures the donor’s wishes precisely, with no risk of ambiguity or provisions being later deemed unenforceable. If a person’s affairs are complex, for example they have overseas assets, or businesses, or perhaps they are beginning to experience lapses of memory but still retain capacity**, then legal advice should be sought.

More generally, a June 2007 study by the National Centre for Social Research found that where older people were in touch with professionals, or were in receipt of home care services, they were more likely to report financial abuse. Professionals such as solicitors, accountants and banks are at the frontline of detecting and preventing the financial abuse of older clients. Thorough staff training and the facilitation of greater contact between vulnerable persons and their professional advisers should be encouraged.

What happens if abuse is suspected?

It can be difficult to know what to do if one suspects that an older person is the victim of financial abuse. What right does a third party have to take any action, if they are not related, or personally affected, or they have no professional relationship or any other standing to intervene? The answer, in relation to victims who whilst vulnerable do nevertheless have capacity, lies in the 2014 Act (and its equivalents in Wales and Scotland). The reader should note that this article does not address the position of individuals who lack capacity; they are within the jurisdiction of the Office of the Public Guardian and the Court of Protection, and specific rules and procedures are in place to protect them.

For suspected victims that have capacity, consider if he or she is ‘vulnerable’ within the meaning of s. 42(1) of the 2014 Act, that is to say:

- has needs for care and support (whether or not the local authority is actually meeting any of those needs);

- is experiencing, or is at risk of, abuse or neglect; and,

- as a result of those needs, is unable to protect him - or her - self against the abuse or neglect or risk of it.

For guidance as to what may constitute financial abuse, and typical red flags, many charities, such as Action on Elder Abuse, have good guidance available online. If it appears that the older person is vulnerable within that meaning, Age UK*** recommend that it is always best that concerns are discussed with the older person and his or her agreement obtained, where possible and safe to do so, before abuse is reported. To report abuse, the local authority should be notified. Every local authority is required by the 2014 Act to have an adult safeguarding board tasked with investigating all such reports, whenever a potential victim is located with its geographic area of responsibility (whether or not they are ordinarily resident there). Local authorities do have the ability to take action to protect such vulnerable people, including in the High Court if necessary.

Whilst professionals or regulated services have particular obligations placed upon them when it comes to detecting financial abuse, all members of society have an important part to play in helping to safeguard the vulnerable. In these challenging and extraordinary times, the protection of the vulnerable in society has come to the fore in the
public conscience. This must extend to areas of vulnerability, such as susceptibility to financial abuse, which are perhaps not as obvious.

* At present the OPG advises that due to the coronavirus, it is experiencing reduced staffing levels together with increased call volumes, which is affecting its response time.

** A person is unable to make an LPA once they have lost capacity.

*** Factsheet 78, Safeguarding older people from abuse and neglect, December 2019, a guide to help people decide what to do if they think an older person is being abused or neglected, or may be at risk of abuse or neglect.