Financial abuse can have a serious impact on vulnerable people, affecting their finances, independence and overall wellbeing. It may involve someone taking control of another person’s money, misusing their assets or making financial decisions that are not in their best interests. In some cases, the signs may be difficult to identify, particularly where the person responsible is someone the vulnerable individual knows or trusts.
Recognising potential financial abuse early helps ensure appropriate steps are taken to protect the person and their finances. Family members, carers and professionals all have a role to play in identifying concerns and seeking support where necessary. We look at what financial abuse involves, the warning signs to watch for, and how vulnerable people can be protected from further harm.
What Can Financial Abuse Involve?
Financial abuse can take many forms and may not always be immediately obvious. It can involve someone taking advantage of a vulnerable person’s finances, property or assets for their own benefit. This may be carried out by a family member, friend, carer or another person who has access to their financial affairs.
In some cases, the person responsible may have been given legitimate access to finances but then misused that position. Financial abuse can also involve pressure, threats or manipulation to influence financial decisions. Understanding the different forms financial abuse can take can make it easier to recognise potential concerns and take action where necessary.
Misusing Money
Financial abuse may involve taking or using someone’s money without their knowledge or permission. This could include making unauthorised withdrawals, using their bank card or taking money intended for their everyday needs. In other cases, someone may persuade a vulnerable person to hand over money or make payments that are not in their best interests. These actions can gradually affect the person’s financial security and ability to meet their essential living costs.
Taking Control of Finances
Someone may attempt to take control of a vulnerable person’s financial affairs for their own benefit. This could involve gaining access to bank accounts, benefits, pensions or other financial arrangements. While a person may have authority to assist with someone’s finances, that authority must be used appropriately. Using another person’s money or financial resources for personal gain could amount to financial abuse and may require further investigation.
Misusing Property or Assets
Financial abuse can also involve a vulnerable person’s property or other valuable assets. This could include pressuring someone to sell or transfer property, making inappropriate gifts or attempting to take ownership of valuable possessions. In some circumstances, someone may also try to influence decisions about a person’s home or other assets for their own benefit. Where property is involved, taking early action may help prevent further financial loss.
Who Can Be at Risk?
Financial abuse can affect anyone who may be vulnerable to pressure, manipulation or exploitation. Older people, people with disabilities and those who lack mental capacity may be particularly at risk, especially where they rely on others for support with their finances or daily care. People living in care homes or those who are socially isolated may also be more vulnerable.
Financial abuse can be carried out by someone the person knows and trusts, including relatives, friends or carers. This can make concerns harder to identify and may mean the vulnerable person is reluctant or unable to raise concerns themselves. Recognising potential vulnerability is therefore an important part of protecting someone’s financial wellbeing.
How Can Vulnerable People Be Protected from Further Financial Harm?
If you suspect financial abuse, acting quickly can help protect a vulnerable person from further harm or financial loss. At Gillhams Solicitors, we work closely with professionals involved in the protected person’s life and can advise on the appropriate steps. Depending on the circumstances, this may involve safeguarding referrals, contacting relevant authorities or taking legal action to address any financial loss.
- Make Relevant Referrals: Where financial abuse is suspected, it may be appropriate to notify the allocated social worker or Social Services so that safeguarding concerns can be investigated. A police complaint may also be necessary where there is evidence of criminal activity. Depending on the circumstances, Gillhams Solicitors can work with relevant professionals to ensure concerns are raised with the appropriate authorities and that the vulnerable person’s interests remain protected.
- Notify Relevant Organisations: Other organisations may need to be informed depending on the nature of the suspected abuse. This could include the Department for Work and Pensions (DWP) where benefits are involved, or the Land Registry where concerns relate to property. It may also be appropriate to inform a care home, family members or other professionals involved in the person’s care.
- Consider Court of Protection Action: In some circumstances, legal action may be required to protect a vulnerable person’s finances or address losses that have already occurred. Gillhams Solicitors can advise on whether an application to the Court of Protection may be appropriate. Taking appropriate legal action can help safeguard their finances and ensure their best interests are considered.
Partner With Gillhams Solicitors for Support With Financial Abuse
Gillhams Solicitors can help identify whether financial abuse may have taken place or whether there are signs that a vulnerable person may be at risk. We work closely with professionals involved in the protected person’s life and, where we have concerns about potential financial abuse, can take appropriate action to protect their interests.
We provide comprehensive legal support to help ensure the vulnerable person’s finances, welfare and best interests are properly protected. If you are concerned that someone may be experiencing financial abuse, contact Gillhams Solicitors for legal advice. Simply complete our online contact form, and we will get back to you. Alternatively, email solicitors@gillhams.com, or call +44 (0)20 8965 4266 for more information.
