Financial abuse can be a complicated topic, one filled with many emotions. Financial abuse is the act of withholding or dictating how an individual spends money or what money they have access to. It can also involve the hinderance of an individual making money or providing income for themselves. 

Who experiences financial abuse 

Research shows that between 94% – 99% of financial abuse cases also involve domestic abuse. However, intimate partners are not the only people who experience this form of abuse. Disable and elderly persons are also very vulnerable and prone to this type of abuse as they are more dependent on those around them to help them with their day-to-day activities. 

What makes this type of abuse difficult to identify is that it is presented as family members, trusted friends or even caretakers doing what is best for that individual. Religious practices or societal norms can be used as a cover for this type of behaviour, contributing to people being stuck in the cycle, as a blind eye is turned. They convince the individuals they have their best interests at heart and are simply taking the burden away from them as they lack the skills or physically are not capable of performing some transactions for themselves.  

Types of financial abuse 

The type of abuse falls into two categories. Those that deprive a person of their income or assets and those that hinder their ability to provide a living for themselves. 

Depriving a person of their income or assets can look like: 

• A spouse been forced to deposit their earnings into the bank account of their spouse 
• An individual being forced to work for another person or family business without any financial rewards 
• An individual being forced out of their home or living in inadequate conditions  
• An individual not having access or right to use their assets for example, a car 
• Elderly or disabled persons being forced to sign over their pension or benefits without being able to control how that money is spent or profiting from it 
• An individual being forced to change their last will and testament  
• Thief of assets or income from another person 

Hinderances to a person earning a living can look like: 

• Prohibiting or dictating that a person does not work, depriving them of an income 
• Prohibiting or making it difficult for an individual to improve their life, for example, preventing them from attending school or classes or even doing homework 
• Behaviours which affect their livelihoods, such as spreading rumours and gossip with a view to that person losing business or creating chaos at their place of employment 

The motivation for this type of behaviour can be for pure financial gain, however with many cases of financial abuse, the purpose of the perpetrator is to gain control and power over the other person and create a dependency on them. 

How to identify financial abuse 

• Joint bank accounts, where one individual has more access rights, that is, they can withdraw funds without the approval of the other person 
• Adult relationships where income is pooled together, and one person is allocated an allowance determined by the other person  
• Loans and credit cards being taken out in the name of a person without their knowledge 
• Filing taxes on another person’s behalf without their knowledge 
• Utility bills and other debts remain outstanding, even though the funds were allocated to a person to be paid 
• One person not contributing to the upkeep of combined assets, for example, the house and cars or for the maintenance of dependent children 
• Incurring expenses, under the pretense of providing reimbursement later but never doing so, can include travel, events, and gifts 
• Financial support being withheld from dependents, can be non-adult children or non-working spouses or withholding benefits, such as money for health care 
• Being expected to justify or provide receipts of how funds are spent, regardless of where the money originated, or the sum involved 
• Being forced into unsafe work or excessive hours and handing the pay over to the perpetrator 
• Securing assets in one person’s name, even though contributions were made by other persons 

In Summary

Most of the cases of financial abuse involve family members or intimate partners. This abuse can go undetected for many years, as those being abused do not identify experiences as mistreatment. For those who do understand, there is the tough question, of how they can seek help or provide for themselves and dependents without putting themselves in a precarious situation.  

They may face the loss of their homes and/or being ostracised by family and the community. Then, there is the question of what resources would be available to help these individuals get back on their feet. While there are social services for persons in these situations in some developed countries, for many in other countries, there are no such services. 

Starting over from financial abuse is difficult, as credit ratings may have been ruined and these ratings are needed to create a new life.  In a quest to save persons from this form of abuse, we need to continuously share knowledge of what financial abuse is and what it looks like in day-to-day life. 

Tanja Gittens 

8 February 2024