The alarming rise in elder abuse: Are vulnerable Aussies under attack in their own homes?

The numbers paint a disturbing picture: calls to the National Elder Abuse phone line jumped by 36 per cent to 9,085 between July 2023 and May 2024.

Behind each of these calls is a story of trust betrayed, often by the very people older Australians rely on most—their own family members.

This troubling trend has coincided with Australia's ongoing cost-of-living pressures, with Age Discrimination Commissioner Robert Fitzgerald warning that the crisis is likely to increase elder abuse risk. The most recent case to grab headlines involves a Sydney real estate agent who exploited her position of trust to purchase a vulnerable elderly man's home for $500,000 below market value—but this represents just the tip of the iceberg.

When Trust Becomes Exploitation: The Rachelle Norah Case

Rachelle Norah's case exemplifies how elder financial abuse often unfolds. The experienced real estate agent held power of attorney over an 82-year-old man with Alzheimer's symptoms and alcohol problems. In April 2023, she purchased his home for $600,000—a staggering $500,000 below its market value, considering the house next door had sold for $1.1 million just one month earlier.

Despite having a decade of experience in real estate, Norah argued at the NSW Civil and Administrative Tribunal that she had done the right thing. The tribunal disagreed, finding she had engaged in misconduct and exploited the vulnerable man for her own financial gain. She was suspended for 12 months and fined $11,000.

This case perfectly illustrates what Dementia Australia's Kaele Stokes warns about: 'Financial abuse of people living with dementia is most often perpetrated by people entrusted to manage the money and financial affairs of someone living with dementia, which makes safeguards all the more important.'

The Shocking Scale of the Problem

The statistics reveal elder abuse is far more widespread than many Australians realise. Research from the Australian Institute of Family Studies found that almost one in six older Australians reported experiencing abuse in the last 12 months, yet only about one-third of those victims have sought help.

When it comes to financial abuse specifically, the National Elder Abuse Prevalence Study found that 2 per cent of community-dwelling people aged 65 and older reported experiencing financial abuse in the previous year. While this might sound like a small percentage, it represents tens of thousands of older Australians being financially exploited annually.

The vulnerability is compounded by disability. Around 50 per cent of Australians aged 65 and over have some form of disability, and research consistently shows that older people with disabilities experience higher rates of abuse than those without impairments.

Why Dementia Makes Targets More Vulnerable

Dr Stokes explains that dementia creates particular vulnerabilities: 'The disease impacts an individual's cognition and decision-making skills and could make them more vulnerable to being taken advantage of.' As dementia progresses, there's a gradual loss of ability to manage financial affairs, creating openings for exploitation.

People with cognitive impairment may also be unable to report abuse, making detection and intervention more challenging. Warning signs can include fear, stress and anxiety expressed by the person with dementia, particularly around financial matters or when certain people are mentioned.

The progressive nature of cognitive decline means that family members and carers often don't notice the early stages of vulnerability. On average, the signs and symptoms of dementia are noticed by families three years before a firm diagnosis is made, creating a significant window where exploitation can occur undetected.

The Family Connection: When Trust Turns Toxic

Elder law specialist Rodney Lewis, who has spent 20 years handling these cases, sees a disturbing pattern. 'If a person has a problem with cognitive ability, then it's much more likely that they won't know or they can be persuaded by the person who's talking to them about transferring the house or the car or whatever it might be.'

Lewis observes that abuse typically comes from within the circle of trust. 'The offender will often come from within the family, not quite as often it may be a friend, neighbour or recent acquaintance,' he explains.

A common scenario he encounters involves family disputes: 'Families invite their grandmother to live with them, so granny sells her house and goes to live in a granny flat, then it starts to fall apart. A family law dispute within the children, loans and bank loan guarantees go wrong.'

The power of attorney system, while designed to protect vulnerable people, can become a vehicle for abuse. As Lewis explains: 'There would be many dozens or hundreds of circumstances and there are serious penalties in the powers-of-attorney law that apply to issues of dishonesty and or taking advantage of the position of trust.'

Current Legal Protections and Challenges

While Australia has laws protecting older people from financial abuse, Lewis argues they need strengthening. 'We definitely need better laws, especially in NSW, more effective laws that once you win a case you can recoup the money and most importantly not see tens of thousands of dollars spent on legal fees.'

The Powers of Attorney Act includes criminal penalties for those who abuse their position, and victims can pursue civil claims to recover money and property. However, Lewis notes there's 'a constant flow of cases' in NSW Civil and Administrative Tribunal where concerned family members seek to review power-of-attorney arrangements.

The Australian Government recognises these challenges. The consultation draft of the National Plan to End the Abuse and Mistreatment of Older People 2024-2034 is currently being developed with state and territory governments, following the success of the previous national plan from 2019-2023.

The Role of Financial Institutions

Australian banks have begun implementing protective measures. The Australian Banking Association has developed resources to help detect elder financial abuse, recognising that financial institutions are often the first line of defence in identifying suspicious transactions.

Banks now train staff to recognise warning signs such as unusual withdrawal patterns, new people accompanying elderly customers to conduct transactions, or customers appearing confused or distressed when making financial decisions.

Protecting Yourself and Your Loved Ones

Prevention starts with awareness and planning. Legal experts recommend several key steps:

For older Australians:

• Choose power of attorney carefully, preferably someone outside the immediate family if there are concerns about financial pressures
  
• Set up regular reviews of financial arrangements with an independent solicitor
  
• Maintain connections with multiple trusted people, not just primary carers
  
• Keep important documents secure and make copies stored separately

For family members:

• Stay involved in older relatives' financial affairs without being intrusive
  
• Watch for sudden changes in spending patterns or new 'advisers'
  
• Be alert to isolation tactics that separate elderly relatives from their support networks
  
• Don't hesitate to seek legal advice if something seems wrong

Getting Help: Australian Resources and Support

If you suspect elder abuse, help is available. The national 1800 ELDERHelp line (1800 353 374) automatically redirects callers to existing phone line services in their state or territory.

State and territory services include:

• Victoria: Senior Rights Victoria (1300 368 821)
  
• NSW: Ageing and Disability Commission
  
• Queensland: Elder Abuse Prevention Unit
  
• Western Australia: WA Elder Abuse Helpline (1300 724 679)
  
• Tasmania: Tasmanian Elder Abuse Helpline (1800 441 169)

Lewis recommends that anyone concerned about potential abuse should 'see a solicitor capable of handling these cases to weigh up the risks of bringing a claim.' Many community legal centres offer free initial consultations for elder law matters.

A Community Response to a Growing Crisis

Elder abuse thrives in isolation and secrecy. Breaking this cycle requires community awareness and action. Neighbours, healthcare workers, bank staff, and service providers all play crucial roles in identifying and reporting suspected abuse.

The 36 per cent increase in calls to elder abuse helplines suggests both growing awareness and unfortunately, growing prevalence of the problem. As Australia's population ages and cost-of-living pressures mount, protecting our most vulnerable citizens becomes increasingly urgent.

The Rachelle Norah case serves as a stark reminder that elder abuse can come from unexpected sources. When someone we trust—whether a family member, professional, or friend—exploits that trust for financial gain, the impact goes far beyond money. It destroys dignity, security, and often, the will to trust again.