A recent report from the non-profit Angus Reid Institute has raised alarm bells over the growing incidents of fraud against Canadian seniors.
Canadians reported being scammed out of more than a record $704 million last year following another record $645 million in 2024, according to the Canadian Anti-Fraud Centre. Since 2022, reported losses have topped $2.4 billion.
Angus Reid notes the real figure is much higher because only five to ten per cent of fraud cases are believed to be reported to authorities.
The study also finds people over 60 years old are nearly twice as likely as 18 to 29 year olds to report being victims of fraud over the past two years.
The increase can mostly be attributed to an influx of baby boomers entering their golden years and longer life expectancy. The latest census from Statistics Canada shows the number of Canadians aged 55 to 64 has surpassed Canadians aged 15 to 24 for the first time ever, and the number of people over 85 is expected to triple over the next 25 years.
Much of the increase comes with advances in artificial intelligence but shockingly, many fraudsters are often believed to be family members.
To stem the tide, the Canadian Securities Administrators (CSA) is calling on registered financial advisors to request clients provide a Trusted Contact Person (TCP) to contact if they have concerns about a client’s ability to make financial decisions, or if advisors suspect a client is being exploited.
The CSA has also given advisors the power to place temporary holds on transactions if they suspect a client is suffering from dementia.
Selecting a Trusted Contact Person
According to securities regulators, a TCP should be an individual the client trusts.
There is no minimum age requirement but it should be someone that is mature and able to engage in potentially difficult conversations about the client’s personal situation.
To avoid potential conflict, they advise selecting a trusted contact that is not a beneficiary.
Being named a trusted contact does not give that person access to the client’s account.
Older Canadians also have the option of designating a power of attorney (POA), which is a legal document that gives one or more people the authority to manage a person’s money and property if a doctor determines that person is unable for mental or physical reasons.
Clients are under no obligation to appoint a power of attorney when dealing with financial advisors.
Many older Canadians, however, don’t have a power of attorney or even a financial advisor. That puts the onus on them to take measures on their own.
Here are some suggestions to prevent financial elder abuse:
Ensure your financial and legal affairs are in order, and documents are up to date
Check all accounts regularly to make sure they are not being accessed without your knowledge and legal affairs such as power of attorney are up to date.
Save copies of documents you authorize
Be sure you understand any financial documents you are signing and keep copies in your personal files. It helps to include the signature of a witness.
Open all your mail and review all statements personally
Don’t leave vital financial information for someone else. If you have questions or don’t understand something ask a qualified advisor, bank or lawyer to explain.
Don’t let family or friends pressure you into financial decisions
In some cases, the elder abuse is being committed by family members or friends. You have the final say in matters that impact you. Consider obtaining independent legal advice when lending money, transferring ownership of property, reviewing your will and dealing with matters relating to caregiver arrangements.
Fully understand any power of attorney agreements before signing
Make sure you know what power you are giving and who you are giving it to, and know the process and procedures for rescinding the agreement.
