Financial expert Iona Bain has warned that people aged 70 and over are "particularly vulnerable" to a type of pension fraud known as fraud by abuse of position. Speaking on BBC Morning Live, she explained that this occurs when a trusted family member, friend, carer, or in some cases a solicitor, uses their position of responsibility over someone else's finances to steal money, assets, or property.
Over-70s lose more than £51 million
According to Report Fraud, "data shows older people are disproportionately affected. Victims aged 70 and over accounted for more than £51 million in reported losses, while those aged 80 to 89 suffered the highest number of reports and the highest financial losses of any age group, losing almost £24 million."
Bain described a "really shocking story" following "new figures released by City of London Police, which is a police force that looks into fraud in the UK, and it's saying that millions of pounds collectively are being stolen from older vulnerable people through something called fraud by abuse of position."
Fraud by abuse of position explained
Bain said this fraud is "committed by someone you know and trust. In some cases, someone you might even love." She added: "They are doing this because you're not in the position to fully look after your finances - maybe because you've lost capacity. You're really placing your trust in that person to look after your interests and look out for you. Instead, they are using that for their own gain; it's really hard to swallow knowing that this is going on."
Data from Report Fraud shows that in the last financial year, criminals stole £93.8 million through fraud by abuse of position. Bain warned: "Nearly half of those losses have happened to those who are age 70 above. So clearly older people are particularly vulnerable to this."
Official warning and reassurance
Detective Superintendent Oliver Little, from the Lead Force Operations Room at the City of London Police, said: "These offences can have a devastating impact because they are committed by people who have been trusted to act in the victim's best interests." He added: "The fact that people aged 70 or over had more than £51 million stolen highlights the significant threat this fraud poses to older and sometimes more vulnerable members of our communities. We want families, carers and those responsible for managing another person's affairs to know the warning signs and report concerns, so we can better protect those at risk."
Despite the scale of losses, Bain said there is no need to panic, as such cases are the "exception", not the norm. She advised: "You should be aware of the problem, but not paranoid and not overly worried." There were nearly 4,000 reports of fraud by abuse of position in the last financial year, but only about 500 involved a social care worker. With over 800,000 adults in the UK receiving social care and about one million delivering it, she said "it just goes to show this is not widespread and it's not happening across the board. It's only happening in a very small minority of cases."
Bain also noted that there were 764 reports about misuse of power of attorney in the last financial year, with reported losses of around £35 million. While "a huge figure", she pointed out that there are 6 to 8 million registered lasting power-of-attorney in place in the UK. She acknowledged possible under-reporting but reassured: "It's safe to say the majority of people who have this responsibility do not abuse it."
What to do if you suspect abuse
Bain stressed that having suspicions does not make you a bad person, but advised making sure you have evidence or can at least "identify a clear pattern of behaviour" before acting. She suggested considering the following questions: Are you being pressured into making decisions? Are you being rushed into making decisions about your finances? Are you being pressured to keep those decisions a secret from people you trust? Are there large purchases or bank transfers happening that you don't know about until afterwards?
"All of these are a cause for concern," Bain said. Host Gethin Jones added that people should not be offended, and Bain agreed, concluding: "If they've got nothing to hide, they should be willing to share everything."
