TECHNICAL TALK
RECENTLY , THE INDEPENDENT BODY THE FINANCIAL VULNERABILITY TASKFORCE HAS TAKEN A LEAD HERE BY ISSUING A REPORT ENTITLED ‘ THEFT AND FRAUD WITHIN FAMILIES ’ THAT SEEKS TO OPEN UP A DEBATE ON THIS SUBJECT , AND IN SO DOING FIND WAYS TO BETTER UNDERSTAND THE ISSUE AND ENCOURAGE ALL STAKEHOLDERS TO WORK TOGETHER MORE EFFECTIVELY TO REDUCE THE HARM IT CAUSES .
It is a common misconception that financial abuse and coercion , including theft and fraud , is inflicted in the main by individuals or organisations at arm ’ s length and by people largely unknown to the victim . Anecdotal evidence has for some time suggested that a significant amount of abuse and coercion is inflicted by those much closer to home – namely , family members . However unpalatable this may be , as far back as 2008 , a report for Help the Aged ( now Age UK ) suggested that not only was 70 % of financial abuse of older people perpetrated by family members , but it also estimated that somewhere between 60 and 80 % of these crimes and misdemeanours took place in the home 1 . Whilst much financial abuse and coercion does seem to be directed at older people , it does of course involve all age groups and family structures .
What is financial abuse and coercion ? Financial abuse involves a perpetrator using or misusing money which limits and controls an individual ’ s current and / or future actions and their freedom of choice . In so doing , this often involves coercive control that can be seen as a pattern of threatening , controlling and ultimately degrading behaviour directed at the victim . In some cases , what we are talking about can charitably be interpreted as ignorance , for example , where someone acts as attorney to a family member and fails to appreciate their role and ‘ best interest ’ duties under the Mental Capacity Act 2005 . In other cases , it can reflect more ingrained attitudes , for example , the sense of entitlement that some offspring may feel in respect of the financial wealth accumulated by their parents . This issue is of course not restricted to older people – the manipulation of financial assets and other economic resources is an all-too-common aspect of depriving individual adults of all ages , often women , of the material means needed for independence , respect , resistance and , in some cases , freedom .
What needs to be investigated and why We need to get a grip of the scale and nature of abuse and coercion within families . We need to move from anecdotal to hard , data-based and systematic evidence . We then need to seek to understand context , both in terms of the motivation of perpetrators and the circumstances of victims . The impact of loneliness and social isolation are potentially important here , where similarities may be drawn with research around those more vulnerable to fraud and scamming . It is difficult to find training for frontline staff on how best to tackle the issue . There is a clear need to upskill our workforces to become adept at spotting and dealing with this effectively . Prevention is one of the key principles of adult safeguarding and we can meet this duty by developing and following best practice guidance on financial abuse and coercion within families .
The role of the Financial Vulnerability Taskforce Recently , the independent body the Financial Vulnerability Taskforce has taken a lead here by issuing a report entitled ‘ Theft and Fraud Within Families ’ that seeks to open up a debate on this subject , and in so doing find ways to better understand the issue and encourage all stakeholders to work together more effectively to reduce the harm it causes . Sponsored by the All-Party Parliamentary Group on Insurance
and Financial Services , this report highlights the lack of awareness about this issue amongst the public and some professional services , as well as within some safeguarding organisations . It suggests that the subject needs to be fully researched , best practice guidance developed and awareness spread more widely amongst the general public . Failure to do this and address the elephant in the room will mean individuals will continue to pay an unacceptable price both financially and emotionally , with harmful impact continuing to spread across society .
1
Crosby , G . et al . ( 2008 ) The financial abuse of older people : a review from the literature . Centre for Policy on Ageing - CPA ; Financial Exclusion Programme , Help the Aged . London : Help the Aged , 2008 , 36 pp .
How you can help You can download a copy of the report from within the library section of the Financial Vulnerability Taskforce ’ s website at https :// www . fvtaskforce . com / resource-library . If you haven ’ t yet signed up to support our Charter , you can do so easily via the registration section of the same website .
You can review your firm ’ s policy in respect of how and when you encourage the involvement of family members in the advice you give to individuals . There are , of course , often good reasons to encourage their involvement , but only after your client has been seen on their own and you are able to assess their wishes and vulnerabilities .
Finally , we welcome hearing about your experiences of this subject , including the details of any cases you have come across ( subject to the removal of any identifying particulars and details ) so we can follow up our report with some further anonymised case studies and start the process of building good practice . You can contact me at Tony . miles @ fvtaskforce . com . Thank you .
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