- Having loans or contracts taken out in someone else’s name considered the worst form of financial abuse.
- 52% do not believe financial institutions do enough to protect customers from financial abuse.
Some people will always seek to exploit others, and when those individuals are trusted friends or family members, it’s even more troubling. Recently, there has been a rise in cases of financial or economic abuse, which, in many respects, can be just as damaging as emotional or physical abuse. Victims often find themselves with little or no access to their own finances, leaving them vulnerable and powerless. This type of abuse typically involves the perpetrator controlling the victim’s money, spending, bank accounts, and ability to borrow. Disturbingly, the abuser is often a spouse or family member, meaning the people who should be trustworthy are the very ones inflicting harm.
Examples of financial abuse include someone using a credit card to pay for items without the cardholder’s knowledge or having contracts taken out in their name for the perpetrator to use (such as mobile phones, credit cards, mortgages, and loans). Some even make their victims change the beneficiary of their will. CardRates recently carried out a survey of 3,000 Americans to find out how many people have been victims of financial abuse.
The study found that 51% of Arizonans said they have been victims of some form of financial or economic abuse – this compares to a national average of 43%. The top five states to be affected by financial abuse are:…