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Lasting Power of Attorney - a Powerful Shield from Phishing

The Dangers of Leaving your Parent Unprotected

How to Protect an Elderly Parent from Fraud

How to keep your parents safe from heartless phishing scams

In January 2015, Stephanie Sanders shared in the national press her story of her bitter regret at having delayed in helping her elderly mother to make her Lasting Power of Attorney, leaving her mother at the mercy fraudsters.

Heartless card fraud

Stephanie’s mother was 81 years old and living with dementia, and had recently applied to register a Lasting Power of Attorney, so that Stephanie could help look after her money.

Sadly, while she was waiting for the registration process to be completed, Stephanie’s poor Mum was defrauded out of £1000.00 by a bank card scammer.

“Someone impersonating a police officer called my mother to say her cards had been used fraudulently. He said she must stop her cards and told her to call her bank,” said Stephanie, “She called the number and believed she was speaking to [her bank], and gave the information requested, including her pin numbers. Someone collected the cards, supposedly for fingerprints.”

The thieves duped Stephanie’s mother into handing over her credit card and her bank debit card, which they used to withdraw £600 in cash and go on a £400 shoe-shopping spree. 

No help from the bank

When Stephanie discovered the fraud, she went to the bank with her mother to seek help.

“When we went into her local branch, armed with ID, the manager wouldn’t help us.” says Stephanie, “We were struggling for over three hours to get an explanation as to why she had been refused a refund … [The bank] was extremely unhelpful.”

Although the credit card gave a prompt refund, the bank refused to refund the money stolen from the debit card. Only after Stephanie enlisted the help of the Guardian Newspaper did the bank finally relent.

How a Lasting Power of Attorney could have helped.

If only Stephanie and her Mum had made the Lasting Power of Attorney earlier. If the process of registration had been complete and the Lasting Power of Attorney had been valid, Stephanie could have used her powers under the Lasting Power of Attorney to help her mother in the following ways:-

  • Stephanie would have been able to limit the amount available in her mother’s current account, to the amount needed to pay her Mum’s outgoings for the month, transferring any surplus into a deposit account. By keeping the deposit account debit card in a safe place for her Mum, Stephanie would have been able to protect her Mum’s “rainy day money” from theft.
  • Stephanie would have been able to arrange for any calls and letters from the bank to be directed to her instead of her Mum.
  • Stephanie would have been in a position to establish a routine with her Mum for Stephanie to deal with all her financial affairs. This would have helped her Mum get into the habit of telling any callers from “the bank” to speak to Stephanie instead.
  • In the event of the worst happening and fraudsters managing to get at her Mum’s money, dealing with the aftermath would have been easier. Having registered herself with the bank as her mum’s attorney, Stephanie would have been able to deal with the bank on her own without having to take her Mum with her to the branch, shielding her Mum from the stress.

 When to Make a Lasting Power of Attorney

The time to make a lasting power of attorney is when your parent is still fit and well. Delaying until your parent has become vulnerable is a bad idea, as we can see from Stephanie’s sad tale.

When it comes to making a Lasting Power of Attorney, there is no such thing as “too soon”. Once a Lasting Power of Attorney is made and registered, it is only capable of being used when your parent has become vulnerable and needs support. A Lasting Power of Attorney is there as a safety net, not a tool for curtailing your parent’s personal freedom.  The best advice is to make Lasting Powers of Attorney in mid-life, so that they are there to be called upon if ever and whenever needed - for decades to come.

It is, however very easy to leave it too late. Many families don't like to talk about the subject of old age and vulnerability, and leave it until their parent’s dementia is quite advanced. The problem is, if the condition is so advanced that your parent no longer really understands what a Lasting Power of Attorney is, they may lack capacity to create one at all, which leaves you having to fall back on an application to the Court of Protection, which is a costly, long-winded and stressful procedure best avoided if at all possible.

If you are concerned about your parents – or indeed if you want to put some safeguards in place for yourself,  for your own children’s peace of mind – feel free to get in touch for more advice and information about what to do. Either give us a call on 0151 601 5399 or fill in the contact form below. We’re here to help.

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