Financial Abuse and Exploitation: Recognition and Response
Financial Abuse and Exploitation: Recognition and Response
Category: Rights & Social Justice
Reading time: 8 minutes
Her bills aren't being paid. But she says her daughter handles the money. The daughter has a new car.
Is this loving family help or financial exploitation?
He hands his entire disability support pension to his "friend" each fortnight. Gets a small amount back for smokes. Lives in poverty while "friend" thrives.
Where's the line between helping and exploiting?
She can't access her own bank account. Her partner controls all the money. She has to ask permission to buy groceries. It is monitored constantly.
This is economic abuse. But she doesn't call it that.
Let me show you how to recognise financial abuse in its many forms, respond while respecting autonomy, support people to protect themselves, and navigate the complexity of money, power, and relationships.
Understanding Financial Abuse
What It Is
Financial abuse (also called economic abuse): Using money or financial systems to control, exploit, or harm someone.
Can include:
Taking someone's money without permission
Controlling access to their own money
Forcing financial decisions
Preventing them from earning or accessing income
Running up debts in their name
Selling or taking their property
Using their identity for financial gain
Misusing the power of attorney
Coercing them to change will or sign documents
Often co-occurs with other forms of abuse.
But it can exist alone.
Why It's Hidden
Financial abuse is:
Hard to see from the outside
Often rationalised as "helping"
Shame-inducing for the victim
Complicated by legitimate helping relationships
Dismissed as "just money matters"
Not always recognised as abuse
Victims may not identify it as abuse themselves.
Especially if:
Perpetrator is a family member
Some benefit received (housing, care)
Complicated by disability or age
Cultural norms about family money
Dependency on the perpetrator
Who's Vulnerable
Higher risk:
Older people
People with disabilities (especially intellectual disabilities)
People with cognitive impairment or dementia
People in relationships (intimate partner violence)
People with acquired brain injury
People experiencing homelessness
People with substance use issues
People who are isolated
People with limited financial literacy
People from cultures with different money practices
Anyone can experience financial abuse.
But vulnerability increases with:
Dependency on others
Cognitive or communication differences
Social isolation
Power imbalance in relationships
Forms of Financial Abuse
In Intimate Relationships (Economic Abuse)
Control tactics:
The partner controls all the money
A person must ask permission for purchases
Monitoring all spending
Withholding money as punishment
Preventing work or education
Sabotaging job (making them late, turning up at work, etc.)
Denying access to bank accounts
Forcing debt (credit cards, loans)
Taking wages or benefits
Economic isolation
Part of coercive control.
Creates dependency and prevents leaving.
Elder Abuse
Common scenarios:
Family member "helping" with finances, taking money
Power of attorney is being misused
Pressure to change will or sign over property
"Borrowing" money with no intention to repay
Selling property without consent
Moving in and taking over financially
Isolation from the other family while controlling money
Undue influence when a person vulnerable
Often by adult children or extended family.
Hidden because:
Family is supposed to help
Older people trust them
Shame about being exploited by family
Fear of losing a relationship
Belief they're a burden anyway
Disability Exploitation
Common scenarios:
Support person or family member controlling NDIS funding
Taking disability support pension
"Managing" money but keeping most of it
Coercing purchases that benefit the exploiter
Using a person's identity for loans/credit
Selling a person's belongings
Unethical plan management
Charging excessive "rent" to a family member with disability living at home
Particular vulnerability when:
A person has intellectual disability
Communication differences
Limited financial literacy
Dependency for care
Isolation from alternatives
"Friends" and Acquaintances
Common scenarios:
New "friend" asks for money repeatedly
Staying in a person's home and taking control
Coercing a person to buy them things
"Helping" with bills, but keeping money
Using a person's car, phone, or equipment without reciprocity
Moving into a vulnerable person's house and exploiting
Drug deals and debts
Exploitation under the guise of friendship.
Service Provider Exploitation
Unethical practices:
Overcharging for services
Billing for services not provided
Accepting gifts or money from vulnerable clients
Pressuring to change will in their favour
Using client information for personal gain
Charging "fees" outside formal services
Abuse of a professional relationship and trust.
Scams Targeting Vulnerable People
Common scams:
Romance scams (online relationships asking for money)
"Grandson" scams (impersonating family in crisis)
Fake bills and demands
Prize or lottery scams
Investment scams
Phishing and identity theft
Target vulnerable people systematically.
Recognising the Signs
Direct Signs
What you might see:
Bills not paid despite income
Sudden inability to afford things previously manageable
Bank accounts are empty shortly after payment
Signing documents, they don't understand
Pressure from others about financial decisions
Others deposit a person's money into their own accounts
Property or belongings disappearing
New "friend" or family member suddenly involved in finances
The person is anxious about money despite an adequate income
Unexplained withdrawals or transactions
Behavioural Signs
A person might:
Seem confused about their finances
Can't access own money
Needs permission for purchases
Worried about someone's reaction to spending
Reluctant to discuss finances
Defensive about financial "helper"
Isolated from others who might notice
Fearful or anxious generally
Have injuries or neglect despite money for care
Make excuses for person controlling money
Relationship Signs
In relationships:
Partner extremely controlling
A person has no financial autonomy
Must account for every dollar
Prevented from working
Financial decisions are made unilaterally
Threats related to money
Punishment through money withholding
Complete financial dependency
How to Respond
1. Build Trust and Safety First
Don't immediately confront abuse.
First:
Build relationship
Create a safe space to talk
Don't judge
Demonstrate you're trustworthy
Show consistent support
Financial abuse often comes with other abuse and control.
A person needs to feel safe before disclosing.
2. Ask Gently About Finances
If you're concerned:
"I'm wondering how you're managing financially at the moment?"
"Do you have access to your own money?"
"Is anyone helping you with your finances?"
"Are you comfortable with how your money is being managed?"
Not: "Is someone stealing from you?" "Why do you let them control your money?"
Open, non-judgmental questions.
3. Name It Without Forcing
If they describe exploitation:
"What you're describing sounds like financial abuse. That's when someone uses money to control or exploit someone else. It's not okay, and it's not your fault."
But if they're not ready to name it:
Don't push. They might not be ready to call it abuse yet.
Just: "That sounds really difficult and unfair."
4. Respect Autonomy While Offering Information
Don't:
Take over their finances
Make decisions for them
Force actions
Remove their control (just transfers abuse)
Do:
Provide information about rights
Explain options
Support them to make their own decisions
Offer advocacy if wanted
Even well-meaning control is still control.
5. Supported Decision-Making
Help them:
Understand their financial situation
Know their rights
Explore options
Weigh pros and cons
Make informed decisions
Access support
But they decide.
Even if you think their decision is risky.
(Unless they lack capacity, which is assessed properly, not assumed)
6. Connect to Appropriate Services
Resources:
Financial counselling
Legal services
Banking support
Elder abuse prevention services
Disability advocacy
Domestic violence services (if relevant)
Police (if fraud or theft)
Public Guardian or Trustee
Community legal centres
Warm referrals, not just handing out phone numbers.
7. Safety Planning
If they want to address it:
Safety planning includes:
How to protect the remaining money
Accessing own bank accounts
Safe storage of documents
Support people identified
Legal protection if needed
What to do if the situation escalates
Emergency contacts and resources
Financial abuse safety planning often involves:
New bank account in a safe location
Direct deposit splitting
Safe place for documents
Legal advice about property
Police reports of theft
Credit report checks
8. Document Concerns
Keep records of:
What you've observed
What person has told you (with consent)
Actions taken
Referrals made
Concerns raised
May be needed for:
Legal action
Adult protection
Police reports
Guardianship applications
But always:
With a person's knowledge where possible
Respecting confidentiality
Supporting their choices
Special Considerations
People with Intellectual Disability or Dementia
Don't assume incapacity.
Do assess:
Can they understand their financial situation?
Can they understand options?
Can they communicate a decision?
Is the decision consistent with values?
With support, many people can make own decisions.
If genuine incapacity:
Least restrictive alternative
Acting on their known wishes
Supported decision-making first
Substitute decision-making only when necessary
Regular review
When It's Family
Most complex scenario.
A person may:
Love the family member
Depend on them for more than money
Not want to "get them in trouble"
Feel obligated
Be isolated from others
Fear of losing all family contact
Your role:
Don't force them to choose between family and financial security
Acknowledge complexity
Support them through difficulty
Sometimes intervention happens slowly
Sometimes they choose family despite abuse
This is their right, even if heartbreaking.
When It's Part of Domestic Violence
Economic abuse is common in intimate partner violence.
Leaving is complicated when:
No access to money
Joint debts
Employment sabotaged
Financial dependence
Nowhere to go without money
Support requires:
Understanding DV dynamics
Not pressuring them to leave
Supporting access to money safely
Financial counselling
Legal advice
DV-specific resources
Safety planning that includes finances
Cultural Considerations
Different cultures have different practices around:
Family money management
Adult children supporting parents
Collective vs. individual ownership
Gender roles in finances
Elder authority over family money
Navigate carefully:
Learn about cultural practices
Distinguish between cultural norms and abuse
Don't pathologise cultural difference
But also recognise that abuse can occur within any cultural context
Engage the cultural community if appropriate
Use culturally appropriate services
Key question: Is the person consenting and comfortable, or being controlled/exploited?
Prevention and Education
Financial Literacy
Help people understand:
Bank accounts and how they work
What they can expect from financial helpers
Their rights over their own money
Red flags for exploitation
Where to get help
Not condescending.
Accessible education.
Rights Education
People need to know:
They have the right to control their own money
Others can't take their money without permission
Family "helping" doesn't mean taking
They can revoke the power of attorney
They can refuse to give money to others
Financial abuse is wrong and illegal
Many people don't know their rights.
Safer Systems
Advocate for:
Banking safeguards for vulnerable people
Better oversight of the power of attorney
NDIS plan management protections
Mandatory reporting of suspected elder abuse
Accessible complaint systems
Penalties for financial abuse
Individual support is important.
But systems need to protect people better.
When to Report
Mandatory Reporting
In some jurisdictions, mandatory reporting for:
Elder abuse (depending on state)
Disability abuse (especially in some funded services)
Child abuse (if children involved)
Know your legal obligations.
But even with mandatory reporting:
Involve the person in the process where safe
Explain what you're doing
Support through reporting process
Don't just report and abandon
When Person Lacks Capacity
If you believe person:
Cannot understand the financial situation
Cannot make decisions even with support
Is being seriously exploited
May need to:
Report to adult protection
Contact Public Guardian
Seek guardianship for financial matters
Involve the police if there is criminal abuse
But always:
Least restrictive alternative
Involve the person as much as possible
Act on their known wishes
Not just for your peace of mind
The Bigger Picture
Financial abuse is about power and control.
Money is a tool for:
Creating dependency
Isolating victims
Preventing escape
Punishing
Controlling
When we respond:
Don't replicate control
Respect autonomy
Support empowerment
Address the power imbalance
Create safety
Financial abuse is serious.
But the response must still centre on rights and autonomy.
Protection without empowerment just shifts who controls the money.
Real support means:
Information and options
Resources and advocacy
Respect for decisions
Safety planning
Systems change
Financial security is a human right.
So is autonomy.
Supporting people experiencing financial abuse means honouring both.
Key Takeaways
Financial abuse includes taking money, controlling access, coercing decisions, and exploitation under the guise of "helping"
High-risk groups include older people, people with disabilities, those in intimate relationships, and isolated individuals
Signs include bills unpaid despite income, sudden inability to afford things, anxiety about money, and others controlling accounts
Build trust before confronting; ask gently about finances without judgment
Respect autonomy while offering information; don't take over finances even with good intentions
Supported decision-making helps people understand the situation and make their own choices about the response
When it's family, a person may not want to "get them in trouble"; acknowledge complexity without forcing choices
Connect to financial counselling, legal services, advocacy, and specialist abuse services with warm referrals
Reflection Questions
What signs of financial abuse might you be missing in your clients?
How do you balance protecting people from exploitation with respecting their autonomy?
What resources exist in your area for financial abuse support?
How could your service better support people at risk of financial abuse?
Sarah Smallman is the founder of The Community Workers Hub and believes financial security and autonomy are both human rights that must be protected together.
