Financial abuse

Financial abuse is:

 The unauthorised and improper use of funds, property or any resources belonging to another individual. 

Section 42 of the Care Act 2014 states that financial and material abuse includes: 

• theft 
• fraud 
• internet scamming 
• coercion in relation to an adult’s financial affairs or arrangements, including in connection with wills, property, inheritance or financial transactions 
• the misuse or misappropriation of property, possessions, or benefits.

The most common type of financial abuse is committed by partners, family members, friends, or carers, people who are in a position of trust and power. 

This may include: 

• taking money out of a person’s account or cash from their wallet/purse without their permission 
• taking out credit in a person’s name without their knowledge or permission such as a credit card or bank loan
• cashing a person’s cheques or money without their consent
• being stopped from accessing their own finances and bank accounts
• someone using a bank or credit card without the permission of the card holder to purchase items for their own financial gain 
• taking possessions or property from the persons home without their consent
• someone requesting for benefits to be paid into their account and failing to provide the victim with their benefits 
• romance fraud - where a person who meets an individual online who grooms the person into making payments
• blackmail - a type of abuse that can be used for financial gain and may involve using threats of physical, mental or emotional harm, or of criminal prosecution, against a victim or someone close to them. 

As defined by the Domestic Abuse Act 2021, economic abuse is any behaviour that has a negative effect on someone’s ability to

• acquire, use or maintain money
• acquire, use or maintain property
• obtain goods or services. 

It is a legally recognised form of domestic abuse. It involves the control of a connected person’s money, finances and things that money can buy. This includes clothing, transport, food and a place to live. 

Commercial financial abuse is abuse committed by those who identify as or are pretending to be a commercial entity. 

This may include: 

• a trader stating work needs to be done on a property due to it being in “disrepair” or “unsafe”
  • this includes, driveways, tarmacking, gardening, guttering, roofing, tree cutting, etc
• someone pretending to be a trader to groom and befriend a person to extort money and assets from them (this is fraud)
• courier fraud - where someone makes a phone call claiming to be from the bank or police asking the victim to withdraw money from their account and meet a courier
• impersonating officials and demanding payment for services - such as TV licencing. They may do this this over the phone, online or in person 
• postal, telephone and internet scams - where the person has fallen victim to the fraudster claiming to be an investment company and the person is groomed into giving them money 
• being deliberately overcharged for goods or services or being asked to part with money under false pretences
• unlicensed money lending (loan sharks) - for example, being offered a loan on very bad terms 
• staff or volunteers borrowing money or accepting gifts or money from clients
• professionals misusing a person’s assets - for example, carers using an adults Blue Badge or their mobility car without them present 
• personal allowance for a person in a care home being used by the care home or household budget or otherwise misappropriated by care staff
• care provider/ day service intentionally charging a person for support although it is not delivered at the amount agreed upon
  • for example, in the Care and Support Plan 1:1 support is to be delivered and not 2:1.