Financial abuse: how banks protect your money

Financial abuse is domestic abuse. It is the most widespread form of domestic abuse, affecting nearly 99 percent of total domestic abuse cases. Manipulating money and other economic resources is a form of coercive control, a pattern of behavior used by an abuser to establish or maintain control over another person. Some common types include:

• Financial abuse – In an abusive relationship, it can appear as a caring gesture at first when a domestic partner offers to take care of the family finances. Their behavior then escalates into intimidation, humiliation, or assault to maintain tighter control over their partner and their finances.
• Elder abuse is intentional harm or mistreatment of a person over age 65. It is also the illegal use of elderly people’s financial resources without their consent. This includes using theft, fraud, and coercion to obtain control of their assets by a care facility, caregiver, friend, or family member. According to the U.S. Department of Justice, at least 1 in 10 adults aged 65 and older experience elder abuse each year.
• Economic exploitation is broader abuse than just controlling money and finances. It extends to necessities like housing, food, employment, and access to education or medical care. Long-term limitations on an individual’s freedom leads to a decline in overall health and well-being.

How can financial institutions help?

Banks, credit unions, and other financial institutions are eager to prevent financial abuse and fraud. They have a responsibility to protect their customers’ privacy and ensure that their money is safe. They also know when money is taken out of your account in a way that is outside your usual pattern, it may never return. It is in their best interest to protect your money and their bottom line. Here are some ways financial institutions can protect your money from financial abuse and exploitation:

• Secure your accounts – Financial managers can help move your money into secure accounts with new account numbers. They can also set up fraud alerts to track payments to unfamiliar individuals or unusual transactions, such as money wiring or regular maximum limit ATM withdrawals. These alerts can be sent to a trusted contact if the account owner is unable to manage their finances by themselves.
• Automatic bill pay or autopay – Be careful with who has access to your accounts and can pay bills. Most financial institutions offer autopay. This allows you to pay regular monthly bills directly from your account with no exchange of checks or cash.
• Emergency funds – Open a separate account with a fixed amount to pay for emergencies. Or, set up a credit card with a fixed credit limit.
• Teller services – If you’re suspicious about an unusual invoice or think you are involved in a scam, bring in the letter, email, or text you received. Most banks and credit unions have trained tellers who can go over them with you and help determine if they’re legitimate or a scam.
• Financial counseling – Meeting with a financial manager or advisor can help you identify patterns of financial abuse. If there are concerns about potential abuse, the financial manager can work with the account owner to address the situation. This is a good option if the customer is concerned about conflict with family members or friends.

Additional resources

• Domestic abuse – Contact the National Domestic Abuse Hotline or call toll-free 800-799-SAFE (7233).
• Elder abuse – Contact California Adult Protective Services or call toll-free 833-401-0832.
• Emergencies – Call 9-1-1 or your local law enforcement.
• DFPI Protect Yourself from Fraud Booklet
• DFPI Consumer Insight: Financial Abuse is Domestic Abuse