Ten years following the establishment of financial abuse as a criminal offense, more than nine million individuals in the UK continue to be impacted annually. While affecting people across all age groups and demographics, women are predominantly affected, with one in six reporting experiencing economic abuse within a relationship.
Financial abuse involves one individual controlling another person’s finances to their own benefit and the detriment of the victim. Typically orchestrated by intimate partners, it can also involve family members, friends, or trusted individuals within a support network.
This form of abuse can manifest in various ways, such as coercing someone to acquire credit or loans in their name for the perpetrator’s benefit. It could involve pressuring the victim into a joint account and siphoning off all the funds for personal use. Alternatively, it may involve one party’s financial recklessness leading to the other party facing financial hardship while covering essential expenses like mortgage payments.
In certain cases, financial abuse occurs when an individual’s benefits are redirected to a ‘responsible adult’ who fails to utilize the funds as intended for the recipient. Others may find themselves compelled to have their salary deposited into someone else’s account, receiving only a limited ‘allowance’ in return.
Financial abuse is prevalent in 99% of domestic abuse cases, serving as a means of controlling the victim’s financial autonomy and complicating their ability to make plans for leaving the abusive situation.
Victims may not always realize they are being financially abused, especially in instances where trusted caregivers exploit vulnerable adults with conditions like dementia, misusing their funds. Recognizing the warning signs of economic abuse is crucial for addressing such situations promptly.
Certain behaviors, such as pressuring someone to take out credit in the victim’s name or demanding income to be deposited into the abuser’s account, are red flags signaling financial abuse. Restricting the victim’s work hours or constantly monitoring their spending are also indicative of controlling and abusive behavior.
Financial abuse hampers victims’ ability to save money and plan an exit strategy. Seeking assistance from domestic abuse charities or organizations like Surviving Economic Abuse can provide support in navigating such challenging circumstances.
Victims are advised to safeguard their financial accounts by informing their banks and credit card providers of potential risks. Additionally, confiding in a trusted individual to formulate an action plan and seeking help can be crucial steps towards breaking free from an abusive situation.
Raising awareness about financial abuse is essential to empower individuals to recognize and address such misconduct. Initiating conversations and seeking help can pave the way for victims to seek assistance and break free from abusive situations.