All About Estates
By Scotiatrust
December 5th, 2024
The internet has transformed the way we live our lives. Should it transform our Powers of Attorney too?
A report released in early 2024 reported that the average adult internet user spends six hours and 40 minutes every day online. The typical social media user spends just shy of two and a half hours on social media per day. Though some internet and social media use can of course be beneficial – driving social connections, providing educational opportunities, fostering creativity, to name a few – they have a dark underbelly as well. Risks to vulnerable users can include identity theft, financial losses (scams), bullying, harassment and exploitation.
While these risks are not new, perhaps the exposure of vulnerable individuals to these risks are greater as a result of social media and online dating sites. One significant concern to the older population of internet users are financial scams such as romance scams, where fraudsters adopt an online persona, befriend and seduce a stranger online, and, once they’ve gained the trust of the victim, persuade the victim to send money. The Canadian Anti-Fraud Centre says that 945 victims reported having lost more than $50 million to romance scams in 2023. The real numbers, including victims and losses who have not made a report, are certainly much higher.
How, or in what circumstances, can we act to prevent a loved one from falling victim to these risks? Should our incapacity planning documents (e.g. Powers of Attorney for Personal Care or Personal Directives) specifically deal with internet use or social media?
Clearly, not everyone who falls for a scam online does so because of a lack of capacity. Indeed, the presumption is that a person has capacity (absent evidence establishing a lack of capacity) and there is a distinction between unwise or naïve behaviour versus ‘incapacitous’ behaviour.
Kristie Smith, Estate & Trust Consultant, Scotiatrust
How can we balance the risk of harm to the individual while not unduly restricting the individual’s privacy and freedom? What would you want for your loved ones, if they were in the situation of not understanding who might see the information they were putting online or not understanding who they might be talking to online? What would you want for yourself?
