When Trust Becomes a Weapon: The Quiet Epidemic of Elder Financial Abuse  

By John Wolf    

It started like something out of a courtroom drama, but this one was all too real.

In Sydney, a seasoned real estate agent was recently suspended and fined after purchasing a home from an 82-year-old man with signs of Alzheimer’s.

The price? A cool $600,000, half a million dollars below market value. The house next door had sold for $1.1 million just a month earlier.

The agent, Rachelle Norah, held power of attorney over the man. She argued she’d done nothing wrong.

The NSW Civil and Administrative Tribunal disagreed, ruling she had engaged in misconduct and exploited a vulnerable person for personal gain.

It’s a disturbing case, but sadly, not a rare one.

The Hidden Crisis Behind Closed Doors

According to the Australian Institute of Family Studies, one in six older Australians experiences elder abuse each year. Financial abuse, the kind that hides behind legal documents and polite smiles, affects over 2% of them. And for those with disabilities or long-term health conditions, the risk skyrockets: 21% report being victims of abuse.

Kaele Stokes from Dementia Australia explains why. “As dementia progresses, there may be a gradual loss of ability and capacity to manage financial affairs,” she says. “Financial abuse is most often perpetrated by people entrusted to manage the money and financial affairs of someone living with dementia.”

In other words, it’s not strangers in the night. It’s people with keys to the front door.

When Family Isn’t Safe

Rodney Lewis, a human rights lawyer and elder law expert, has seen it all. For over 20 years, he’s handled cases where trust was weaponised, often by family members.

“People befriend seniors with money, that’s how it starts,” he says. “If someone has cognitive issues, they’re more likely to be persuaded into transferring property or assets.”

He describes a common scenario: a parent sells their home to move into a granny flat with one of their children. Promises are made. Then things fall apart. Loans go bad. Siblings start fighting. And suddenly, the elder is left with no home, no money, and no legal recourse.

The Legal Gap

Lewis says the laws in NSW, and across Australia, need serious reform. “We need better laws that allow people to recover stolen assets without spending tens of thousands on legal fees,” he says.

“There are criminal penalties under the Powers of Attorney Act, but they’re rarely enforced.”

Most cases, he adds, aren’t brought by the elder themselves. “It’s usually a concerned family member, a sibling who realises their brother is trying to trick mum into signing over the house.”

What Can Be Done?

The first step, Lewis says, is awareness. “This happens daily. It’s been happening for years. And it will keep happening unless we act.”

If you suspect someone is being taken advantage of , whether it’s a neighbour, a parent, or a friend, speak up.

Talk to a solicitor who understands elder law. Ask questions. Don’t assume someone else will step in.

Because when trust becomes a weapon, silence is the sharpest blade.