The Conversation
ASKING a trusted son, daughter or family member to jump online and pay a bill might seem harmless, but handing over an internet banking password can create risks few families consider until something goes wrong.
As banking moves increasingly online, older Australians can find themselves relying on relatives or carers to help manage everyday financial tasks.
It might be transferring money, checking whether a bill has been paid, looking at an account balance or navigating an unfamiliar banking app.
For many families, it is simply another way of helping Mum, Dad or an ageing relative remain independent.
But research into older people’s banking habits has highlighted an uncomfortable problem: the person helping sometimes needs access to information that was never intended to be shared.
Canadian researchers found older adults commonly shared online banking passwords with trusted caregivers so they could pay bills, monitor balances and transfer money.
Most carers were well meaning and providing valuable assistance.
The concern was that once another person had the password, the safeguards separating assistance from complete access could begin to disappear.
Families routinely share information with people they trust, particularly when an older relative needs occasional help.
But an internet banking password is effectively a key to someone’s financial life.
Once another person can log in as the account holder, it can become difficult for a financial institution to distinguish between transactions performed by its customer and those performed by somebody using their credentials.
For families trying to help an older loved one, handing over a password may appear to be the easiest solution.
But convenience should not come at the expense of security, privacy or control.
