How to spot signs of financial abuse

Financial abuse is an often under-discussed topic that sadly affects many people, especially women. Read about how to spot the signs of economic abuse here.

While we all hope we never find ourselves in an abusive relationship, sadly, many people – men and women – have been subject to some form of abuse. One perhaps under-discussed form this takes is financial or economic abuse.

There are various ways to define financial abuse. MoneyHelper aptly puts it this way: “Everyone has the right to make independent financial decisions. If your partner, family member, carer, or anybody else is controlling your financial affairs, then this is financial abuse.”

Like some other forms of control, coercion, or abuse, economic abuse can be subtle and build slowly, meaning some individuals do not realise the severity of their situation, nor can they see a way out. Unfortunately, those who are victims of financial abuse can often feel trapped by the perpetrator, and without access to their own money, could find it especially difficult to leave the situation.

While this is a difficult topic to discuss, it’s important that we all know about financial abuse and work together to reduce it.

Keep reading to learn the red flags to spot, and helpful support networks to seek out, if you’re worried about yourself or others.

If you feel you are in immediate danger, call 999 straight away.

Economic abuse can happen to anyone and takes many forms

We often think of financial abuse happening between cohabiting or married partners, and while this is the case, this form of abuse can also happen in relationships between:

• Parents and children
• Carers and patients
• Siblings and other family members.

Usually, financial abuse can occur when one party is particularly vulnerable (but this is not always the case).

For instance, women have long dealt with societal inequality, and this can exist even in our own homes.Experian (November 2023) reports that 1 in 5 women in the UK have experienced financial abuse in some form – that’s equal to 5.5 million women. This is compared to 16% of all UK adults having experienced economic abuse, according to government research (July 2022).

Elderly individuals can be particularly vulnerable to financial abuse. Of course, anyone can register a Lasting Power of Attorney (LPA) and give a trusted individual control of their finances if they feel unable to do so themselves, or if they lose capacity.

But sadly, elderly people could still be preyed upon by those who want to steal from them, including, shockingly, the attorneys named on their LPA if they have one. 2022 research from Age Group reveals that 50% of financial abuse of older people is committed by their adult children, and a further 20% is perpetrated by other family members.

All this said, anyone can experience financial abuse, not just women or older people. For instance, Surviving Economic Abuse (March 2023) reveals that 1 in 10 people – men and women of any age – in the UK say their partner has debts in their name and that they were “afraid to say no” to this. On average, victim-survivors of coerced debt are saddled with more than £20,000 to repay.

10 red flags that could signify financially controlling behaviour

Economic abuse is a form of domestic violence.

If you feel you might be experiencing economic abuse or know somebody who is, it’s important to know the signs that could give you the confidence to report this crime to the police and get help.

Here are 10 red flags that could signify financial coercion, control, and abuse.

1. Your partner or another person often spends your money at will, without consulting you or making a prior agreement, sometimes leaving you without enough to support yourself.
2. Someone takes on debt in your name, even if you have asked them not to.
3. Someone coerces you into giving them important passwords and security details so they can access your money online.
4. Your partner or family member spends your money without permission and refuses to admit this or explain what it was spent on.
5. You’re coerced into routing your salary directly into a joint account or another person’s account, even if you don’t want to.
6. Someone puts assets entirely in your name without a prior discussion, making you financially liable for this asset and putting your finances at risk.
7. Theft of cash you store in your home.
8. Being pressured to name a particular beneficiary in your will.
9. Misuse of an LPA (attorneys are required to use the funds in your best interests, rather than spending the money on themselves).
10. Physical violence or threats when you make financial decisions that your partner, family member, or carer does not agree with.

These are not all the signs of financial abuse, but are some of the most common instances that survivors describe.

Key support networks could be a lifeline if you’re experiencing financial abuse

Firstly, and most importantly, if you suspect your partner or any other person is financially abusing you, it’s crucial to contact the police as soon as you can. It may also be important to relocate to a safe living situation away from the person who is controlling your finances, if possible – but this is easier said than done.

Surviving Economic Abuse, the only UK charity dedicated solely to this issue, has an entire bank of resources aimed at those who are currently experiencing economic abuse or know somebody who is.

This charity presents survivors with vital information on:

• Tackling coerced debt
• Housing and property matters
• Your legal rights to your own money
• Protecting your bank accounts
• De-linking from the abuser.

You can also call Money Advice Plus on 08081 963 699, or look at the government’s Economic Abuse Toolkit (2022) for more information.

Work with a financial planner to build a more prosperous, independent financial future

Whether you are a survivor of economic abuse or currently experiencing it, knowing and working with a financial planner could help you regain control of your money.

While I alone can’t fix the situation – it is important that legal professionals are consulted in cases of financial abuse – I can help you set up a more independent financial future that brings you peace of mind.

I’ll work with you over the months and years it takes to take back what’s rightfully yours, giving you the financial guidance, education, and support you need to move forward with your life.

Want to talk? Email lottie@truefinancialdesign.co.uk or call 07824 554288.

Please note

If you feel you are in immediate danger, call 999 straight away.

This article is for general information only and does not constitute advice. The information is aimed at retail clients only. Please do not act based on anything you might read in this article.

The Financial Conduct Authority does not regulate Lasting Powers of Attorney or will writing.