Financial abuse can affect anyone, but older adults can face particular risks as they navigate retirement savings, investments, home ownership, caregiving arrangements and changes in financial responsibilities.
It can involve a stranger contacting you with a fraudulent investment opportunity, but it can also involve someone you know and trust pressuring you to give them money, sign a document, change your will or provide access to your accounts. The most important thing to remember is that your money and property belong to you. You have the right to make your own financial decisions and to ask questions before making them. Knowing what financial abuse can look like—and knowing where to turn for help—can make it easier to protect your financial independence.
Financial abuse is the unauthorized or improper use of another person's money, property or financial resources.
It can include:
Financial abuse is often committed by someone the older adult knows, such as a family member, caregiver, friend or other person in a position of trust. It can also happen through scams committed by strangers.
It's helpful to understand the difference.
Fraud generally involves deception designed to obtain money, personal information or another benefit. Examples include investment scams, romance scams, phishing, impersonation scams and fraudulent telemarketing. Financial abuse can involve fraud, but it can also happen within a relationship of trust. For example, a family member might pressure an older adult to give them money, or someone acting under a Power of Attorney might misuse the authority they have been given. In some situations, financial abuse can involve both manipulation and fraud.
There is no single reason someone may be targeted. Older adults may have accumulated savings, retirement income, investments or property over many years. They may also rely on others for transportation, caregiving, technology or assistance with financial tasks. Life changes can create additional vulnerability.
For example:
The important point is that being targeted is never the victim's fault. Financial abuse can happen to people who are financially knowledgeable, independent and careful with their money.
Financial abuse can take many forms. Some are obvious, while others may be more difficult to recognize.
A fraudster may promise unusually high returns, guaranteed profits or an exclusive investment opportunity.
Be cautious when someone:
A legitimate investment opportunity should not require you to make a decision before you have had time to understand it.
You may receive a call, text or email claiming to be a child, grandchild or another family member who urgently needs money.
The story may involve:
The fraudster may ask you not to tell anyone. Before sending money, stop and contact the person directly using a phone number or other contact information you already have.
Romance scams can develop over weeks or months. A fraudster may build an online relationship and eventually ask for money because of an emergency, investment opportunity, travel problem or other situation. If someone you've met online asks you to send money, provide banking information or invest on their behalf, take a step back and seek an independent second opinion.
Fraudsters may pretend to be from:
They may claim that your account has been compromised or that you need to take immediate action. Remember: A familiar name, phone number or logo does not prove that a communication is legitimate. Verify the request using contact information you find independently.
Financial abuse doesn't always begin with a suspicious email or phone call. Sometimes the warning signs involve someone close to you.
For example, someone may:
Financial abuse can be difficult to recognize when the person involved is someone you love or trust. That is one reason it is important to have trusted people and professionals you can turn to when something doesn't feel right.
There isn't a single sign that proves financial abuse is occurring. However, changes in financial behaviour can be worth looking into.
Some potential warning signs include:
One warning sign alone does not necessarily mean abuse is taking place. The goal is to notice changes and ask questions without making assumptions.
You don't have to make an important financial decision immediately. If someone is pressuring you to send money, make an investment, sign a document or provide account information, take time to think. Ask yourself: Why do I need to do this right now? If you are being told that you will lose money, miss an opportunity or face consequences unless you act immediately, take a step back. Pressure is a reason to verify—not a reason to act faster.
Talk to someone you trust before making a major or unusual financial decision.
That might be:
If someone tells you that you should not talk to anyone else about a financial decision, consider that a warning sign.
Never share your:
Your financial institution will never need you to disclose your password so that they can "protect" your account. If you receive a suspicious message or phone call, contact your financial institution using a trusted phone number.
Regularly reviewing your bank and credit card statements can help you spot transactions you don't recognize.
Look for:
If something doesn't look right, ask about it.
A Power of Attorney can be a useful planning tool. It allows someone you choose to manage your financial affairs on your behalf in certain circumstances. But it is also an important legal document. The rules and requirements for Powers of Attorney vary by province and territory. A Power of Attorney can give another person significant authority over your finances and property, so choose someone you trust and understand what authority you are granting.
Before signing one:
You should never feel pressured to sign a Power of Attorney.
Adding someone to a joint account can make it easier for them to help with banking, but it can also give them significant access to the funds in the account.
Before opening a joint account, make sure you understand:
Consider speaking with your financial institution and an independent legal professional before making a decision.
Store important financial and personal documents securely.
These may include:
Be thoughtful about who has access to copies.
You don't have to figure everything out on your own. If you notice something unusual or believe someone is taking advantage of you financially, consider taking these steps:
If money is being requested or a financial decision is being rushed, stop and take some time.
If you believe someone has unauthorized access to your banking information, contact your financial institution as soon as possible.
Choose someone who can provide an independent perspective and support you without pressuring you into a particular decision.
Save suspicious messages, emails, receipts, transaction records and other relevant information.
Your financial institution, community organizations, health professionals and local authorities may be able to help you understand your options. The Government of Canada specifically recommends asking your bank or credit union, local seniors' centre, doctor or local police for advice and help if you believe you are experiencing financial abuse. Most importantly, remember that financial abuse is not your fault.
Your financial institution can be an important part of your financial safety network. At YNCU, our team can help you ask questions, review unusual transactions and understand your banking options. If something about a financial request doesn't feel right, you don't have to be embarrassed about asking for help. A few extra minutes to verify a transaction or request can help you make a more informed decision. If you believe your YNCU account or banking information may have been compromised, contact YNCU as soon as possible.
YNCU Service Excellence Centre: 1-800-413-YNCU (9628)
If you're concerned about an older adult in your life, approach the situation with patience and respect. Remember that many older adults remain fully capable of making their own financial decisions. Instead of taking control, consider asking questions: "Is there anything about this situation that concerns you?", "Would you like to talk it through together?", "Would you like a second opinion?", "Do you want me to help you contact your financial institution?"
The goal should be to support the person's independence and help them make informed decisions. If you believe someone is in immediate danger or a crime has occurred, contact the appropriate emergency or law-enforcement service.
Financial abuse can be difficult to recognize, particularly when it involves someone you know or trust. That's why awareness matters. You can reduce your risk by slowing down important decisions, protecting your financial information, reviewing your accounts, planning ahead and asking questions when something doesn't feel right.
And if you're concerned about a financial decision, asking for help is a sign of good financial judgment—not a weakness. Your money is yours. You have the right to understand how it is being used, ask questions and make informed decisions about your financial future.
Financial abuse of seniors is the unauthorized or improper use of an older person's money, property or financial resources. It can involve theft, fraud, pressure, manipulation, misuse of a Power of Attorney or coercion. Financial abuse may be committed by a stranger or by someone the older adult knows and trusts.
Potential warning signs include unexplained withdrawals, unusual purchases, sudden changes to financial documents, pressure to give money, unexplained changes to a will or Power of Attorney, or someone taking control of financial decisions without the older person's consent. One sign doesn't necessarily prove abuse. Changes should be considered in context.
Financial abuse can be committed by strangers, but it can also involve people close to the older adult, including family members, friends, caregivers or other people in a position of trust.
Take time to verify unexpected requests for money or personal information. Don't share passwords or PINs, avoid clicking unexpected links, review financial statements regularly and get a second opinion before making significant or unusual financial decisions.
Slow down and don't make the decision under pressure. Talk with someone you trust or a financial professional who can provide an independent perspective. If you believe the request involves fraud or financial abuse, consider contacting your financial institution and the appropriate authorities.
Yes. Financial abuse can occur within families and other relationships of trust. Examples include taking money without permission, pressuring an older adult to give away assets, misusing a Power of Attorney or coercing someone into changing financial or legal documents.
A Power of Attorney can be an important financial planning tool, but it gives another person authority to act on your behalf. The laws and requirements vary across Canada. Choose someone you trust, understand the authority you're granting and consider obtaining independent legal advice before signing.
Not necessarily. A joint account can be convenient in some situations, but it can also give another person significant access to your money. Before adding someone, understand the risks and consider whether another arrangement could meet your needs.
Contact your financial institution promptly and ask about the transaction. If you believe your account information has been compromised, follow your financial institution's instructions to protect your account.
You can speak with your financial institution, a trusted person, a seniors' organization, health professional, lawyer or local authorities. The Government of Canada specifically recommends contacting your bank or credit union, local seniors' centre, doctor or local police if you believe you are experiencing financial abuse.