Call to prevent financial abuse of elderly

Support organisations are pushing for the financial services sector to help detect and prevent the growing incidence of elder financial abuse.

Seniors support organisations want financial service providers to do more to protect older people from being ripped off.

Five to 10 per cent of older Australians suffer financial abuse, a Financial Services Council symposium on the issue heard on Monday.

Data from Victoria showed financial abuse was the most prevalent issue raised in seniors' helplines, but was significantly under-reported, Age & Disability Discrimination Commissioner Susan Ryan said.

And, the issue is turning into one of the emerging problems facing the nation as Australians live longer, but also experience more deteriorating mental and physical health.

"Over the next decade, we will have the wealthiest and largest group of retirees and older Australians in our history. The finance industry benefits by associating with them, but with opportunity comes obligations," Seniors Australia chief executive Michael O'Neill said.

The sector should step up and tackle the issue, rather than wait for regulatory requirements to be imposed from outside, he said.

In September, NSW parliament launched an inquiry into elder financial abuse. The upper house committee leading the inquiry will hold public hearings in November and hopes to report back by May 2016.

Victoria's royal commission into family violence has also been looking at the issue.

Alzheimer's Australia chief executive John Watkins said governments should require banking and financial services providers to develop systems to prevent, and report instances of, financial abuse.

This would entail training staff and educating customers, he said.

Also, federal and state governments should negotiate to establish clear protocols for reporting cases of elder financial abuse, he said.

Financial services council head Sally Loane said it was important the wealth management industry understand how to identify and tackle the complex issues involved.


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Source: AAP



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