As an accountant, it’s essential to help our clients stay aware of potential threats to their financial security, including financial abuse.
This type of abuse can occur in personal relationships or within business settings, and it often goes unnoticed until significant damage is done.
Here are some key warning signs that you should be watching out for:
- Unexplained Withdrawals or Transactions
You should be cautious if you notice unusual or unauthorised withdrawals from their accounts or transactions that don’t match your usual spending patterns. These could signal that someone is accessing your finances without permission. - Control Over Finances
If someone is consistently trying to control another person’s financial decisions—like restricting access to bank accounts or pressuring them to make certain financial choices—it could be a sign of financial abuse. Healthy financial relationships are based on mutual respect, not control. - Sudden Financial Dependence
A sudden shift where someone becomes overly reliant on another person for financial support can be a major red flag. Financial abusers may start with small requests before escalating their demands, often manipulating others into providing excessive financial support. - Pressure to Co-Sign Loans or Sign Documents
Be cautious if you are pressured into co-signing loans or signing financial documents without fully understanding the consequences. This is often a tactic used by financial abusers to gain access to resources without bearing any personal risk. - Secretive Behavior Around Money
A person who becomes secretive about their finances or hides assets could be displaying controlling behaviour. Financial transparency is key to any relationship, and secrecy around money can be a sign of manipulation or abuse. - Threats of Financial Consequences
Threatening to cut off financial support, take away assets, or cause harm to someone’s financial stability is a common tactic used in financial abuse. Any threats of financial retaliation should be taken seriously.
Recognising these signs early is critical in preventing further harm.
If you suspect you may be experiencing financial abuse, take steps to protect yourself, such as seeking legal advice, establishing financial independence, and setting clear boundaries with those trying to control their finances.
Ultimately, financial abuse isn’t just about money—it’s about power and control. Individuals need to prioritise their financial security; they should seek support if they ever feel uncertain.
