Recent figures from the Office for National Statistics (ONS) reveal that around 85% of domestic abuse-related crimes in the 12 months to March 2022 were non-violent. Around 69% of those cases were classified as emotional or financial abuse.
Financial manipulation can come in a variety of forms and damage the emotional and financial wellbeing of the victim.
Thankfully, there are some red flags that can tip you off and some practical steps you can take to help keep yourself and your loved ones safe.
Keep reading to find out more.
Financial abuse involves taking control of a victim’s money and there are some key red flags to look out for
Financial abuse occurs when someone takes control of an individual’s money. This can leave the victim without access to cash, and with no control over their spending, bank accounts, and borrowing.
Exerting control, and using a victim’s finances to constrain their freedom, can result in long-term damage and often forms part of an overall pattern of coercive control.
It can be easy to miss the signs of financial abuse, but there are some common red flags to look out for. A loved one might:
- Seem vague or evasive when asked about their finances, often refusing to answer simple questions
- Become more easily irritated, emotional, or impatient, and even isolate themselves from family and friends
- Express doubts or concerns about aspects of their finances, like protection, property, or online banking
- Have unpaid bills or make sudden changes to their usual banking behaviour, possibly withdrawing large sums of money
- Have additional names on their accounts or you might notice signatures that look different
- Make unexplained transfers of assets or make changes to their will.
It’s important to note that just because a friend or family member changes their behaviour, it doesn’t mean they’re experiencing financial abuse. But identifying any of the above red flags might indicate that it is time to broach the subject.
If, after reading this, you believe that a loved one is falling victim to financial abuse, consider encouraging them to contact an expert at Safe Lives or Surviving Economic Abuse, or call the Domestic Abuse Helpline at 0800 2000 247.
“Economic abuse” differs slightly from financial abuse
It’s worth noting the difference between “financial” and “economic” abuse. It can be helpful to think of financial abuse as a subcategory of economic abuse, in which the perpetrator restricts or controls a victim’s access to:
- Employment, education and training opportunities
- Resources and services like their benefits, or essentials like food and clothing
- Transport or travel, possibly through confiscating a driving license or passport.
As you can see, economic abuse is a broader form of manipulation, restricting an individual’s ability to better their circumstances through control of their economic situation.
There are some steps you can take to help a loved one you think might be the subject of financial abuse
Remember that financial abuse is a form of domestic abuse and isn’t to be taken lightly. If you think that you, your children, or a loved one are in immediate danger, this is a police matter so call 999.
If you believe you’ve identified some of the warning signs of financial or economic abuse, you might speak to Citizens Advice using Adviceline on 0800 144 8848 (in England) or Advicelink on 0800 702 2020 (in Wales).
Also, consider the following steps if it is safe to do so.
1. Maintain regular contact
A helpful first step in assisting a friend or family member is to maintain regular contact with them.
Consider scheduling regular calls or visits with them. Talking to someone they trust could help them to open up about financial manipulation or highlight the signs they might’ve missed.
Even if you aren’t entirely certain they’re experiencing financial abuse, you may be more likely to spot further signs of manipulation by keeping in frequent contact with them.
2. Share the warning signs of financial and economic abuse
Financial abuse is more common among the over-50s. This demographic holds around 70% of the UK’s wealth, which in itself can make them a target.
While some tools, like Lasting Power of Attorney, for example, are designed to protect older people, abusers can also be manipulative. Helping your loved one to see the warning signs will hopefully prompt them to seek advice and prevent them from making bad choices.
3. Encourage them to improve their financial education or pass on your own lessons
Financial education is key, so encourage your loved one to seek advice if they are able. Your years spent working with us will likely mean that you have your own financial lessons to pass on too.
One of the main non-financial benefits of financial advice is greater confidence in your financial future and a sense of control over your finances. You might be able to help a friend or family member:
- Improve their online security
- Get back on top of their paperwork
- Reengage with their finances.
Get in touch
Economic and financial abuse are serious forms of domestic abuse but knowing the warning signs to look out for could protect you and those you love.
If you’d like to improve your own financial education, or you have any questions about your own finances, please get in touch today.
Contact us now to find out how our Chartered financial planners could help you.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
