Controlling Access to Economic Resources
Controlling access to a person’s money, credit, and assets is a core component of financial abuse, often seen in domestic violence situations. This form of abuse is designed to create dependency by limiting a victim's ability to support themselves or their family, making it difficult for them to leave the relationship. Abusers use various tactics to exert dominance and restrict their partner's financial freedom.
Tactics of controlling finances
- Restricting access to funds: An abuser may withhold cash, deny access to bank accounts, or require that the victim ask for money for every purchase.
- Enforcing an allowance: The abuser gives the victim a strict, often insufficient, allowance to control spending and monitor all financial activity, requiring receipts for proof.
- Monopolizing financial decisions: The abuser takes sole control over household finances, making major decisions—such as taking out loans or large purchases—without consulting their partner.
- Hiding assets or debt: Abusers may conceal assets or hide secret debts, leaving the victim in the dark about the true financial status of the household.
Financial Exploitation
Financial exploitation involves the illegal or improper use of a person's money or assets for personal benefit. While it can happen in any relationship, it is particularly common in cases of elder financial abuse and situations where a victim is dependent on a caregiver. This type of abuse takes advantage of a person's trust and vulnerability.
Examples of financial exploitation
- Power of attorney abuse: A person entrusted with power of attorney abuses their authority to steal money, sell property, or otherwise exploit the victim's assets for their own gain.
- Stealing property and money: This can range from taking cash and valuables to forging signatures on checks or legal documents to appropriate a victim's resources.
- Misusing joint accounts: In a relationship, an abuser might drain a joint bank account, misuse credit cards, or put all the bills in the victim's name while keeping all assets in their own name.
- Coerced debt: The abuser forces the victim to take out loans, co-sign credit cards, or rack up debt in their name, destroying their credit history and limiting future independence.
Financial Identity Theft
Financial identity theft, in the context of abuse, involves an abuser using a victim's personal information to commit fraud or open new accounts without their consent. This form of abuse is particularly damaging because it can ruin a victim's credit score and create long-lasting financial hardship that is difficult to repair. It uses personal information obtained during the relationship to further trap the victim.
Methods of financial identity theft
- Opening new accounts: An abuser can use the victim's Social Security number and other information to open fraudulent bank or credit card accounts in their name.
- Stealing existing accounts: An abuser may take over the victim's existing accounts by changing passwords and PINs, effectively locking them out of their own finances.
- Criminal identity theft: In some severe cases, an abuser may impersonate the victim when arrested, leaving the victim with a criminal record and outstanding warrants.
- Exploiting technology: Abusers can misuse financial apps, online banking, and other technology to monitor spending, send harassment, and change passwords.
Protecting against different forms of financial abuse
| Feature | Controlling Access to Resources | Financial Exploitation | Financial Identity Theft |
|---|---|---|---|
| Primary Tactic | Restricting access to money and imposing an allowance. | Misusing or stealing a victim's assets for personal gain. | Fraudulently using a victim's personal info to open accounts or assume debt. |
| Common Perpetrator | Intimate partners (spouses, boyfriends, girlfriends). | Caregivers, relatives, or trusted professionals. | Intimate partners or family members. |
| Impact on Victim | Creates financial dependency, limiting ability to leave. | Depletes financial resources and can lead to homelessness. | Ruins credit, creates severe debt, and can create legal issues. |
| Warning Signs | Account scrutiny, no access to statements, forced allowance. | Forged documents, unusual bank activity, missing valuables. | Unfamiliar credit report inquiries, new accounts opened, strange bills. |
| Protective Action | Open a separate, private bank account; secure financial documents. | Involve a trusted third party to review finances; monitor accounts closely. | Place a credit freeze; file a report with FTC and police. |
The pervasive role of financial abuse in relationships
It's important to recognize that financial abuse is not an isolated issue but is often intertwined with other forms of abuse, such as physical and emotional. The abuser's tactics are a form of coercive control aimed at trapping the victim in the relationship. The emotional and psychological toll can be immense, leading to depression, anxiety, and a profound sense of helplessness. A study from the Center for Financial Security indicated that 99% of domestic violence survivors had also experienced financial abuse.
Conclusion
The three types of financial abuse—controlling access, exploitation, and identity theft—are distinct yet often overlapping tactics used to exert power and control. Whether through limiting resources, stealing assets, or ruining credit, the abuser's goal is to make the victim financially dependent and unable to leave safely. Understanding these methods is the first step toward recognizing the signs and taking action. If you suspect you or someone you know is experiencing financial abuse, seeking help from resources like the National Domestic Violence Hotline is crucial for safety and recovery.
How to get help and rebuild independence
Leaving a financially abusive relationship requires careful planning. For instance, creating a safety plan involves identifying confidential financial accounts, securing essential documents, and finding a support network. Rebuilding after financial abuse often involves repairing damaged credit, addressing legal issues caused by the abuser, and gradually building financial literacy and independence. Organizations like the National Network to End Domestic Violence (NNEDV) and Legal Aid DC provide resources to help survivors regain their financial footing.
Financial abuse impacts beyond the individual
The effects of financial abuse ripple beyond the individual victim, impacting communities and economies. For example, victims of financial abuse lose a total of 8 million days of paid work each year, contributing to significant workplace productivity costs. The fear of homelessness and lack of access to financial resources are common reasons why survivors remain in or return to abusive relationships, perpetuating cycles of violence and poverty. Awareness and support systems are critical for addressing this widespread issue.
