What is Financial Abuse?

The Care Act 2014 describes ‘financial abuse’ as a type of abuse which includes having money or other property stolen, being defrauded, being put under pressure in relation to money or other property and having money or other property misused.

While the Care Act 2014 definition is clear, financial abuse take many forms. It’s a type of abuse that can start subtle and is often hard to detect.

When defining financial abuse, we know there are many elements at play. It is true that financial abuse often involves or is associated with:

Someone taking or misusing someone else’s money or belongings for their own gain
Harming, depriving or disadvantaging the victim
Controlling someone’s purchases or access to money
Often associated with other forms of abuse
Doesn’t always involve a crime like theft or fraud

Types of financial abuse

What financial abuse looks like can vary which can make it difficult to detect and identify. As the Care Act 2014 definition shows, financial abuse can be concerning money, property or belongings.

Financial abuse might look like:

Borrowing money and not giving it back
Stealing money or belongings
Taking pension payments or other benefit away from someone
Taking money as payment for coming to visit or spending time together
Forcing someone to sell their home or assets without consent
Tricking someone into bad investments
Forcing someone to make changes in wills, property or inheritance

Signs of financial abuse

If suspect that you, or someone you know might be a victim of financial abuse, here are some of the behaviours and signs that might suggest financial abuse could be happening:

Unexplained money loss
Lack of money to pay for essentials such as rent, bills and food
Inability to access or check bank accounts and bank balance
Changes or deterioration in standards of living e.g. not having items or things they would usually have
Unusual or inappropriate purchases in bank statements
Isolation and withdrawal from friends and family
Lack of things you’d expect someone to be able to afford e.g. TV, grooming items, clothing

Who commits financial abuse?

Financial abuse can be committed by anyone anywhere, even people employed to provide care.

This might include:

Spouses, friends, family and neighbours
People employed to provide care
Volunteers
Strangers

Who is at risk of financial abuse?

Financial abuse can affect anyone.

It often takes place where there is an unequal balance of power. This can happen when:

Someone is a victim of anther form of abuse such as domestic abuse or violence
Someone has a learning disability
Someone has a medical condition
Someone takes medication

Financial abuse advice and information

If you want to report or get advice about financial abuse there are a number of options open to you.

Local Safeguarding Adults Board
If you want to report financial abuse – you can contact your local safeguarding adults board. You should be able to find their contact information by searching ‘safeguarding adults board’ and your local area.

Helplines

As financial abuse is often associated with other forms of abuse, there are helplines associated with other forms of about which can help. For example,

1. Financial Abuse Definition:

The Care Act 2014 clearly defines financial abuse as encompassing various actions such as theft, fraud, pressuring individuals regarding their money or property, and misuse of money or belongings.

2. Characteristics of Financial Abuse:

Financial abuse is multifaceted, starting subtly and often being challenging to detect. The characteristics include:

Misuse of Money or Belongings: Involves taking or misusing someone else's money or property for personal gain.
Harm or Deprivation: Causes harm, deprivation, or disadvantage to the victim.
See Also
You May Be Personally Liable Under the FDCPA - Today's General Counsel
Control over Finances: Involves controlling someone's purchases or access to money.
Association with Other Forms of Abuse: Often linked with other types of abuse, extending beyond mere financial transactions.
Not Always a Crime: It may not always involve criminal activities like theft or fraud.

3. Types of Financial Abuse:

Financial abuse can manifest in various ways related to money, property, or belongings. Examples include:

Failure to Repay Borrowed Money
Theft of Money or Belongings
Diverting Pension Payments or Benefits
Taking Money in Exchange for Visits or Time Together
Forcing Property or Asset Sales Without Consent
Tricking into Bad Investments
Forcing Changes in Wills, Property, or Inheritance

4. Signs of Financial Abuse:

Recognizing financial abuse can be challenging, but signs may include:

Unexplained Money Loss
Inability to Afford Essentials
Limited Access to Bank Accounts
Changes in Standards of Living
Unusual Purchases in Bank Statements
Social Isolation and Withdrawal
Lack of Affordable Necessities

5. Perpetrators of Financial Abuse:

Financial abuse can be perpetrated by various individuals, including:

Spouses, Friends, Family, and Neighbors
Care Providers and Employees
Volunteers
Strangers

6. Risk Factors:

Financial abuse can impact anyone but is more likely in situations of unequal power, such as:

Victims of Other Forms of Abuse
Individuals with Learning Disabilities
People with Medical Conditions
Those Taking Medications

7. Reporting and Support:

The article emphasizes the importance of reporting and seeking advice if financial abuse is suspected. Options include contacting local Safeguarding Adults Boards and helplines associated with abuse-related issues.

In conclusion, understanding financial abuse is crucial for identifying and preventing harm to vulnerable individuals. If you encounter any signs of financial abuse or suspect someone might be a victim, taking prompt action by reporting to appropriate authorities or seeking assistance from helplines is imperative.