Do you know the signs of financial abuse?

We know that the stresses placed on families during troubled times, like those that we have recently experienced with the devastating bushfires that were closely followed by the COVID-19 pandemic, can take many forms.

Unfortunately, one form of abuse that is on the rise and that can often be hard to recognise is ‘financial abuse’.

What constitutes financial abuse?

Broadly speaking, financial abuse can be described as any actions or behaviours that take advantage of a trust relationship to fraudulently gain financial advantage.

Regrettably, that means financial abuse is most likely to involve the people we trust the most; a partner, spouse or de facto. For someone who has just entered a new relationship and wants to build a bond of trust, sharing the details of their financial life can seem like a natural thing to do.

But it can also be dangerous. According to a recent study, almost 16% of Australian women will experience financial abuse in their lifetime².

Financial abuse can start with innocent things like an offer to access your bank PIN, so you don’t have to worry about paying bills. Or a helping hand to monitor your investments, like super, because you’re not confident on the internet.

And while it may be uncomfortable to think about being exploited by a loved one, being able to recognise the warning signs can help prevent financial disaster.

What to do to avoid financial abuse

• Don't share passwords
• Check your credit report
• Have your own bank account - with online banking that can include a joint account
• Check in on your finances regularly
• Never sign something you don't understand
• Seek out independent and confidential legal or financial advice

While most of us will be spared the emotional trauma of dealing with financial abuse, you may recognise these signs in people you know, or are close to you. Thankfully, help is just a phone call away.