What is financial abuse and how can you protect yourself?

This article is not legal advice, always seek professional advice from a qualified source that pertains to your situation.

Financially manipulating someone is recognised as a form of domestic abuse and is a criminal offence. Beyond intimate relationships, financial abuse can also happen within families and between caregivers and patients.

It can be devastating when someone close to you betrays your trust like this, causing you to feel isolated and without the financial security you once had. If you want to find out more about what financial abuse looks like and learn how you can protect yourself and others, keep reading.

Definition and types of financial abuse

Financial abuse is a serious matter. Statistics show that 16% of adults in the UK (8.7 million people) say that they have experienced economic abuse. It’s important to remember that this can take shape in many forms.

In short, financial abuse involves someone having power over you financially. They might be spending your money or controlling how you spend your money, often with a motive of personal gain. This can be done openly or more subtly, without the victim knowing. In severe cases, it can leave individuals feeling stuck with nowhere to go.

Examples of financial abuse in action might include:

• Having money or assets stolen
• Being coerced into making financial transactions
• Being coerced into taking out money for someone
• Being coerced into giving someone your account details
• Having joint accounts exploited

Signs and indicators

Often, victims don’t realise what is happening due to subtle tactics being used. Meanwhile, other victims are overtly coerced into taking actions that they haven’t consented to.

Red flags you should be aware of include sudden changes in your financial situation, where changes appear to have come out of the blue. You may also spot unexplained withdrawals or transactions, which can be harder to spot if you don’t regularly check this information.

It’s also important to remain diligent and have an awareness of your financial situation, checking your bank accounts regularly, as this means you’re more likely to spot inconsistencies. If you find that you are being left out of discussions around finances, this too, could be a red flag.

Impact on victims

The consequences of financial abuse can be serious. Not only can it leave you feeling emotionally vulnerable, but it can also leave you in a precarious position financially. Sometimes, people’s entire savings are stolen, which can have harsh consequences. Meanwhile, others may feel trapped and unable to leave their abusive relationship.

If you’ve been a victim of financial abuse, it can be tricky to move forward and trust others. People can be financially abused by their partner, a family member, a carer or even within a professional setting.

Protective measures and prevention

Ultimately, speaking openly about finances is important for a healthy relationship. However you should be cautious about sharing certain details. Set clear boundaries so that you can clearly see when these have been crossed by someone.  Regular and open communication about finances means you’re more likely to spot instances where your partner is leaving you out of key financial decisions.

Maintaining financial independence means you can maintain a sense of financial autonomy so you’re less reliant on your partner. It’s always worth having your own savings and using separate bank accounts. Be cautious when creating legal documents and choosing a power of attorney too.