‘An underlying epidemic': Elder financial abuse on the rise as population ages

As Canada's population ages, it's been estimated that over $1.1 trillion in assets is on the move from baby boomers to gen X and millennials as part of 'the great wealth transfer.'
Despite many elderly Canadians having carefully arranged inheritance plans in place, seniors' advocates and financial crime experts are warning they have become increasingly vulnerable to attempts to exploit their money.
Ahead of World Elder Abuse Awareness Day on Sunday, they said it's important for Canadians, including both seniors and their loved ones, to educate themselves about these growing risks.
Financial abuse is the most common form of elder abuse in Canada, said Holly Cunliffe, a partner at Aird & Berlis specializing in elder law.
'We have a lot of older adults in our population and so we are definitely seeing an increase in instances of financial abuse affecting our older populations,' said Cunliffe, a member of the Society of Trust and Estate Practitioners, a professional body comprised of lawyers, accountants and financial advisers.
She and other experts said seniors generally experience financial abuse in two ways. While financial scams are on the rise, including digital fraud attempts specifically targeting older victims, there is also a growing risk of abuse at the hands of a person the senior already knows.
Cunliffe calls the latter form 'an underlying epidemic' that too often flies below the radar. It typically involves someone with power of attorney — a legal document that gives them authority to act on a vulnerable person's behalf — exploiting the designation to their own benefit.
'Unfortunately, that means friends and family can actually be the perpetrators,' she said.
'If those documents are not prepared early enough in time before there's any potential for diminished capacity or influence, then it is possible that family members … can seek to have those documents prepared for their own personal gain.'
Even if a trusted loved one has every intent to act appropriately, a lack of understanding of the scope of their role and its limits can inadvertently lead to financial abuse, said Cunliffe.
Bénédicte Schoepflin, executive director of the Canadian Network for the Prevention of Elder Abuse, said elder financial abuse usually relies on a trusting relationship. Around 81 per cent of reported cases are carried out by a spouse, family member, friend or acquaintance.
Financial mistreatment 'doesn't always happen in a confrontational or violent way,' said Schoepflin, adding: 'Sometimes it is really more about the trickery of it all.'
'It can be really difficult to recognize that what is happening is not OK,' she said.
'It can start in a manner that feels like it's not a big amount or not a big deal, (like), 'Well, I voluntarily shared my PIN number with my grandson because he was helping me to go get groceries' and then … there's a gradual slide into bigger, more serious forms of abuse.'
Schoepflin said vulnerability also has an intersectional element. The risk of being victimized is higher for woman, seniors who have experienced mistreatment earlier in life, those who identify as a person of colour, along with those living with someone financially dependent on them.
'People choose to stay silent because they do not want to create issues within their own closed circles,' she said.
'The person who is experiencing abuse might not want to be in that situation, but still might also not want to create trouble for the person who is harming them or taking advantage of them, or might not want to upset a family balance.'
Cunliffe said the risk of being exploited is even greater for Canadians with cognitive decline, including those living with diseases such as dementia or Alzheimer's.
'The older the person is, the greater the risk of cognitive decline, and with that decline comes the risk of an increased vulnerability to financial abuse,' she said.
The other category of financial abuse — incidents in which the perpetrator, such as a scammer, is not known to the victim — is also a growing threat, said Larry Zelvin, head of BMO's financial crimes unit.
He said technologies such as AI are making scams more sophisticated and harder for older adults to detect. Nowadays, AI-powered tools can be used to generate realistic phishing emails, while deepfake technology can even enable scammers to impersonate family members or trusted advisers.
'Some of them might be less digitally competent … which also makes them more vulnerable,' said Zelvin.
He added seniors are targeted especially because they have often already accumulated wealth.
'As you get older, unfortunately, you become more isolated,' he said.
'Older folks, especially those who are missing those social interactions, are maybe more trusting in nature than they would have been otherwise.'
He said his advice is that if an out-of-the-blue offer 'sounds too good to be true, it probably is.'
Monday Mornings
The latest local business news and a lookahead to the coming week.
Zelvin also encouraged seniors to come forward if they suspect they've been a victim of financial exploitation, noting cases are vastly under-reported to authorities such as the Canadian Anti-Fraud Centre, RCMP or local law enforcement.
While it might seem embarrassing to admit, he said those targeted should feel no different than if they were reporting any other crime, like if their car had been stolen.
'You've been a victim. You are not culpable,' he said.
'You're not just reporting it. You may be preventing other people from having to go through what you went through.'
This report by The Canadian Press was first published June 12, 2025.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Calgary Herald

4 hours ago

• Calgary Herald

Opinion: How Mark Carney is offering CEOs a chance to rebuild trust with Canadians

After last month's throne speech, Bloc Québécois leader Yves-François Blanchet lamented that he feels Prime Minister Mark Carney 'sees himself culturally as the CEO of Canada.' With his background in corporate finance, it's no surprise Carney has been likened to a stereotypical finance boss. Article content But is bringing CEO-type leadership to the federal government a bad thing, particularly at such a precarious moment for our country economically? Article content Article content Article content Canada has been starved of this style of leadership. But this goes beyond a culture change in Ottawa. Carney is also opening the door for CEOs to take on critical leadership roles in the execution of his agenda. With his aggressive economic development platform and the charge to 'build, baby, build,' our prime minister has turned on the CEO bat signal. Article content Article content Not since the depths of the pandemic has business had such an extraordinary opportunity to contribute to the greater good, and for CEOs to offer leadership that offers impact well beyond their workforce. Article content However, the unfortunate reality is that Canadians don't trust their business leaders. The latest Edelman Canada Trust Barometer results, released in March, revealed that only 37 per cent of Canadians trust business leaders — 16 points lower than the average of the 28 countries the firm studies, ranking them near the bottom of that list. Article content Article content How have our business leaders run so afoul of Canadians? Rationalizing food inflation in front of a parliamentary committee doesn't help, nor does the massive gap between CEO compensation and that of the average worker. It also doesn't help that two-thirds of Canadians feel business leaders are actively trying to mislead them, according to the recent Edelman study. Article content This crisis of trust is made worse by the fact that most Canadians feel the system is failing them — that no matter how hard they work, the next generation will not be better off. Business leaders have become a lightning rod for that grievance. Article content It is in this context that CEOs are trying to make sense of the role they should play in a country that needs more from them. And they should play a role. While there have been some well-documented missteps that have led to this extraordinary level of distrust, for years the data has pointed to a growing expectation that they step up and step into the current void.

19 hours ago

Nearly half of national public pension plan is invested in U.S. — and only 12% in Canada

As a former top Finance Department official, Susan Peterson played a key role years ago in creating the stable Canada Pension Plan that we see today. But even she was surprised by the numbers. A few weeks ago, the Canada Pension Plan Investment Board (CPPIB) revealed that 12 per cent of the CPP's assets are invested in Canada — its lowest level ever. The largest chunk of its $714-billion fund, 47 per cent, is currently invested in the United States — its highest level ever. Peterson doesn't think she's the only one surprised. If Canadians knew out of the $714 billion such a miniscule amount was invested in Canada, I think they would say, whoa, what's wrong with this picture. The CPPIB is not alone. Experts say the Canada Pension Plan (CPP) is one of several Canadian pension plans that have been investing far more in the U.S. than in Canada in recent years. The CPP, whose investments are managed by the CPPIB, also known as CPP Investments, is a public pension plan that covers millions of Canadian workers across the country with the exception of Quebec, which has its own manager, the Caisse de dépôt et placement . Those who support this high level of U.S. investment, including the CPPIB itself, argue the plan's mandate is to make money. They argue U.S. investments offer more diversity and higher returns — which help ensure the plan will be able to pay out benefits for years to come. Others, however, question why the plan isn't doing more to invest in Canada to create Canadian jobs and infrastructure projects. Enlarge image (new window) Annual reports for 2005 and 2006 did not include geographical distributions outside of Canada. Photo: Canada Pension Plan Investment Board Elizabeth Thompson They are also concerned about the plan's U.S. exposure at a time when President Donald Trump's administration has made the country a riskier place to invest. The Trump administration's big, beautiful tax reform bill also contains a section that risks hitting Canadian pension funds (new window) that have U.S. investments with a new withholding tax that experts predict could cost Canadians and Canadian companies billions if it is adopted. Some pension funds, like the Public Sector Pension Investment Board which has 41 per cent of its assets invested in the U.S., have said in recent days that they are reconsidering their U.S. exposure and are looking for more Canadian investment opportunities. Michel Leduc, head of public affairs and communications for the CPPIB, says it has to invest for the long term, regardless of individual governments or administrations. We're investing money for people who aren't even born yet, he said. That long-term thinking must be the strongest pillar of how we think about our investment strategy. But he says the CPPIB at the same time isn't short-term stupid. We're continuing to think through what could be some of the bigger impacts, he said. Leduc said the U.S. percentage has grown even though the fund has been diversifying away from the U.S. because the existing investments have grown in value. U.S. stocks have gone up, he said. It's just because we make good investments. Time to invest at home again? The CPPIB is also open to Canadian investment opportunities, Leduc said. Prime Minister Mark Carney has announced plans to invest and build in Canada. He has mentioned pension funds as one possible source of money. Finance Minister François-Philippe Champagne said the government also plans to host foreign pension funds interested in investing in Canada. People see Canada as the place to invest, Champagne told CBC News. So, we'll always be talking to them and investors from around the world. There was a time when the CPP primarily invested in Canada. Initially, it was operated as a pay-as-you-go model with investments in Canada, largely in government bonds. However, in the late 1990s the pension plan was facing a crisis — Canada's chief auditor predicted that it would run out of money by 2014 unless something was done. Spearheaded by then finance minister Paul Martin, and aided by officials like Peterson, the federal government and provinces agreed to a package of reforms, including the creation of the CPPIB. While the CPPIB is a Crown corporation, it operates independently from government. For years, a foreign property rule capped the amount pension funds could invest outside Canada. Introduced in 1971, it limited investments by pension funds to 10 per cent of their assets going abroad. That was raised to 20 per cent in the 1990s and then 30 per cent in 2001. In his 2005 budget, Finance Minister Ralph Goodale repealed that rule, saying the move had the potential to increase venture capital investments by pension plans in Canada. Since then, there has been a steady reduction in the value of CPP's investments in Canada and a steady rise in U.S. investments. U.S. stocks rise in value In 2005, 74 per cent of the CPP's assets were invested in Canada. By 2015 it was down to 24.1 per cent. For the last two years it has stood at 12 per cent. At the same time, the plan's assets have grown — from $81.3 billion in 2005 to $714 billion on March 31. Its assets are projected to hit $1 trillion in the next few years, making it one of the largest pension plans in the world. However, as the proportion of the CPP's investment in Canada has dropped and its assets in the U.S. has increased, so too have questions about where the money is going. In March 2024, dozens of top Canadian executives penned an open letter to Finance Minister Chrystia Freeland and provincial finance ministers, concerned with the decline in Canadian investments by pension funds and its impact on the Canadian economy. They called on the ministers to amend the rules governing pension funds to encourage them to invest in Canada. Investments made in Canada do not impact just pension portfolios; they also have a considerable impact on the country's economy; generating jobs, improving incomes and increasing contributions to retirement plans, the executives wrote. In April 2024, the federal government appointed former Bank of Canada governor Stephen Poloz to look at how to catalyze greater domestic investment opportunities for Canadian pension funds. That resulted in proposals in the fall economic statement including measures to make it easier for pension funds to invest in Canadian companies, municipal-owned utility corporations, airports and AI data centres. Daniel Brosseau, co-founder of the Montreal investment firm Letko Brosseau, is concerned by the long-term erosion in Canadian pension fund investment in Canada and its impact on the economy. It's been a long-term decline, and we're basically investing very little in Canada now, he said. Brosseau doubts the measures in the fall economic update will make much of a difference. They don't allow the pension funds to distinguish between a Canadian and a foreign investment in any way, he said. They will have no effect. Instead, Brosseau suggests the government tax the foreign income of pension plans. They could clearly see a difference between a Canadian investment and a foreign investment, and that would change their behaviour, he said. Chris Roberts, director of social and economic policy for the Canadian Labour Congress, says the CPP's role in the Canadian economy is an important debate that is about to heat up — and he wants all Canadians to participate. These are people who pay into the CPP every day and will draw a CPP benefit when they retire, he said. They're often of the view that the CPP Investment Fund should invest more at home and create jobs and economic opportunities here in Canada. Lessons from Quebec Unlike Quebec's Caisse , which has a double mandate to make money and to also invest in Quebec's economic development, the CPP's only mandate is to make money, Roberts said. Sen. Clément Gignac, an economist by profession and a former Quebec cabinet minister, has asked questions in Senate proceedings about where the CPP is investing. He says Quebec has successfully made money for the province's retirement fund while also bolstering economic development. Gignac said Carney's pledge to invest in infrastructure could create opportunities for the CPP and other pension funds to invest in Canada. Do we need to change the mandate officially, or will it come naturally? he said. Gignac would like a Senate committee or a special commission to take a closer look at how Canada's largest pension plans, dubbed the Maple Eight, are investing their assets abroad. If anything happens and geopolitics deteriorate, or we have a hostile foreign country who suddenly seize our assets, just like we have seized assets from Russia … or change the rules of the game on taxation, just like Mr. Trump wants to change them — it would be important if we have a robust risk-management analysis. Trish McAuliffe, president of the National Pensioners Federation, said her members would like to see prudent, ethical investment by the CPPIB as well as increased investment in Canada. We love nothing better than to see great investments here…. investments in infrastructure, hospitals. Things that will benefit our age demographic but also our community at large, she said. McAuliffe said the federation attends stakeholder meetings with the CPPIB, and while at the early stages, she expects the question will be part of the federation's convention in October. We're hopeful … that they're going to make the right decisions, she said. But make no mistake — people are watching. Elizabeth Thompson (new window) · CBC News

Cision Canada

19 hours ago

• Cision Canada

Prime Minister Carney announces changes in the senior ranks of the public service

OTTAWA, ON, /CNW/ - Canada's new government has a mandate for change. A stronger Canada depends on a strong and effective public service – one that is focused on execution, delivery, and impact. Today, the Prime Minister, Mark Carney, announced the following changes in the senior ranks of the public service: Jean-François Tremblay, currently Deputy Minister of Environment and Climate Change, becomes Senior Official at the Privy Council Office, effective June 30, 2025, while he prepares for his upcoming role as Ambassador and Permanent Representative of Canada to the Organisation for Economic Co-operation and Development. Mollie Johnson, currently Deputy Secretary to the Cabinet (Plans and Consultations) and, concurrently, Deputy Secretary to the Cabinet (Clean Growth), Privy Council Office, becomes Deputy Minister of Environment and Climate Change, effective June 30, 2025. Nancy Hamzawi, currently Executive Vice-President of the Public Health Agency of Canada, becomes President of the Public Health Agency of Canada, effective June 20, 2025. Alison O'Leary, currently Assistant Deputy Minister, Federal-Provincial Relations and Social Policy, Department of Finance Canada, becomes Associate Deputy Minister of Finance, effective June 30, 2025. The Prime Minister also announced that Kaili Levesque, Associate Deputy Minister of Fisheries and Oceans, will provide direct support to the Secretary of State (Nature), and that Mark Schaan, Deputy Secretary to the Cabinet (Artificial Intelligence), Privy Council Office, will provide direct support to the Minister of Artificial Intelligence and Digital Innovation. The Prime Minister took the opportunity to congratulate Heather Jeffrey, former President of the Public Health Agency of Canada, on her recent retirement from the public service. He thanked her and Suzy McDonald, Associate Deputy Minister of Finance, for their dedication and service to Canadians throughout their careers and wished them all the best in the future. This document is also available at