Financial abuse

Financial abuse is the improper use or exploitation of someone’s money, assets or property. It is a complex and serious issue which can come in many forms and involves someone you trust or depend on such as a family member, friend or carer abusing your relationship to gain control of your finances.

It’s important to be aware of the risks of financial abuse and what to look for so you can get help. Some examples can include:

• Someone withholding your own money from you
• Controlling the household finances or refusing to include you in financial decisions
• Restricting or controlling access to your bank statements
• Forcing you to pay someone your salary or benefit payment
• Forging a signature on your financial document
• Coercing you to take out credit contracts
• Using emotional blackmail (particularly within families) to pressure you to give your money away
• Unauthorised use of banking and financial documents
• Asking for your money as a “loan” with no intention of paying it back
• Coercing you to change your will
• Forcing you to be guarantor on a loan or, make them a signatory on your bank account
• Persons authorised to manage your money not acting in your best interest by using your money for their own benefit. Note: This can include misuse of Power of Attorney or, an Authority to Operate on your bank accounts

Who can be a risk of financial abuse?

While we often think of financial abuse as something that effects the elderly, in reality, anyone can be at risk. Statistically, other groups with increased risk of financial abuse can include:

• People with disabilities
• Someone who is socially isolated
• Persons who identify as Aboriginal and/or Torres Strait Islander
• Someone where English is not their first language
• People with low financial literacy
• Those who are dependent on someone else for their care

Some common signs of financial abuse

It can be difficult to distinguish when you may be experiencing financial abuse. Family members, for example, manipulate your affection for them to pressure you into giving them money.

They may also make you feel guilty if you say you can’t help them financially. This is often referred to as using ‘emotional blackmail.’ They may also use intimidation or threats, for example, threatening to cease contact with you.

Some financial abusers can be driven by a sense of entitlement to your money. An example is ‘inheritance impatience’ where someone believes they should have access to your money now because they will inherit it from you later.

Requests for ‘informal loans’ within families can lead to conflict, especially if the loan is not repaid. Should the person who provided the loan pass away, the unpaid loan (especially when undocumented) can often be a source of ongoing disputes with the Estate

Other family agreements occur when an older person or adult with disability transfers money or property to a family member in exchange for lifetime housing or care. Commonly this is funding a secondary dwelling (like a granny flat), renovations, or mortgage contributions. These are often made ‘informally’ and work well if the relationship and financial situation are stable. However they can be quite risky and leave the older person exposed to potential financial abuse and loss of housing and support.

Financial abuse can also include where someone seeks to control your financial resources without your consent and at times your knowledge, such as withholding your income from your account, preventing you from working, or refusal to pay their portion of bills and expenses.

Other signs can include where you notice someone who always managed their finances well now have an inability to pay their bills and essential items such as food and clothing.

We’re here to help:

If you are a Community First member and are concerned about financial abuse, please call us on 1300 13 22 77 from 8am – 8pm weekdays and 8am – 3pm Saturdays. If you are overseas, you can call us during those times on +61 2 9735 1600.

Our staff can provide you information on your bank accounts and guidance on the use of Power of Attorney or Authority to Operate on your bank accounts.

While we can help with your banking, if you or someone you know is experiencing financial abuse and require broader assistance, there are a number of Government related services to provide you support.

Other resources include (but are not limited to):

If you have concerns about yourself, an older person or adult with disability in their family, home and community you can call:

• NSW Ageing and Disability Abuse Helpline on 1800 628 221 for information, support or to make a report
• National Elder Abuse Phone Line 1800 ELDERHelp (1800 353 374)

Depending on your individual circumstances there are a number of other resources you can contact including:

• 1800RESPECT Service Directory
• Seniors Rights Service: Protecting the rights of older people – Seniors Rights Service
• Good Shepherd Financial Independence Hub – free and confidential service providing on-going support for people who have experienced financial abuse
• Indigenous Consumer Assistance Network – provides consumer education, advocacy and financial counselling services to Indigenous consumers
• National Debt Helpline – helps people tackle their debt problems
• Older Persons Advocacy Network – advocates for and supports older people.

Note: Many of these support services are only available during standard business hours that can vary across states and territories. In an emergency, call 000.