What Is Financial Abuse and How to Recognize It

Financial abuse can be difficult to recognize, especially when it happens gradually or is mixed with other forms of controlling behavior.

If someone is restricting your financial independence, using your money without permission, or creating debt in your name, you may be experiencing financial abuse. Understanding the signs can help you identify what is happening and consider steps to protect your finances.

What is financial abuse?

Financial abuse is a pattern of behavior in which someone uses money, financial resources, or economic control to limit another person's independence or exert power over them.^[1]

It can happen in romantic relationships, marriages, families, or other situations where one person has access to or control over another person's finances. Financial abuse can also include preventing someone from earning money or making financial decisions for themselves.

4 signs of financial abuse

Watch for these patterns indicating that someone is trying to control your financial life.^[2]

1. Controlling access to money

Are you being prevented from accessing money you earn or have a legal right to use? For example, someone may take your paycheck, limit how much money you spend, or prevent you from having your own bank account.

Sharing finances by choice isn't necessarily financial abuse. The concern is when someone uses control over money to restrict your independence or ability to meet your needs.

2. Sabotaging employment or education

Financial abuse can also involve interfering with your ability to earn income.

Someone may prevent you from going to work, pressure you to quit your job, interfere with your transportation, or make it difficult to maintain reliable child care. They may also discourage or prevent you from attending school or completing training that could help you pursue a career.

3. Running up debt in your name

Another warning sign is discovering that someone has used your personal information or accounts to create debt without your knowledge or consent.

This could include opening credit accounts in your name, making unauthorized purchases, or pressuring you to take out loans for someone else's benefit.

4. Withholding financial information

You may also be experiencing financial abuse if someone deliberately keeps you in the dark about money.

This could mean hiding bank statements, refusing to disclose debts, concealing income, or preventing you from knowing how shared bills are paid. A person who controls the household finances may also make major financial decisions without consulting you.

How financial abuse affects your credit

Financial abuse can have lasting effects on your credit if it leads to missed payments, unpaid bills, high balances, or accounts you didn't authorize.

For example, if someone takes control of your accounts and stops making payments, the resulting delinquencies may appear on your credit reports.

What to do if you're experiencing financial abuse

If you believe you're experiencing financial abuse, your next steps depend on your circumstances and your safety.^[3]

Document everything

Keep records of financial transactions, account statements, unauthorized charges, messages, and other evidence of financial abuse when it's safe to do so. Store copies somewhere the other person can't access.

You can use this documentation to dispute fraudulent accounts, report identity theft, work with an attorney, or seek other forms of assistance.

Open accounts in your own name

Open a bank account only you can access, if safe and practical. Establish your own email address and change passwords for personal financial accounts.

If someone else has access to your accounts, review your security settings and consider what steps to take to protect your information. Be cautious about making changes if doing so could put you at greater risk.

Reach out for help

Talk with someone you trust, such as a friend, family member, financial professional, attorney, or domestic violence advocate.

If your situation involves identity theft or unauthorized accounts, report it to the credit bureaus and relevant financial institutions.

Consider speaking with a financial advisor, credit counselor or other professional for guidance specific to your situation. The National Foundation for Credit Counseling (NFCC) offers free or low-cost counseling at 1-800-388-2227.

If you're concerned about your immediate safety, he National Domestic Violence Hotline is available 24 hours a day at 800-799-7233 (800-799-SAFE), by texting START to 88788, or by live chat at thehotline.org.

How to rebuild financially after financial abuse

It can be difficult to move forward, but here are steps that can help start building a stronger financial foundation after financial abuse.

• Review your credit reports and identify accounts or information you don't recognize. Dispute errors or inaccurate information with the credit bureaus.
• Create a budget or financial plan based on your current income and expenses, and work toward meeting it.
• Build an emergency fund, starting small and growing it so you have a better chance of handling unexpected costs.
• Establish accounts in your own name, including credit accounts. Make consistent, on-time payments to build a credit history.

The process may feel overwhelming, especially if you are starting from a difficult financial position. Take it one step at a time.

Bottom line

Financial abuse is about more than someone taking your money. It can involve controlling your access to financial resources, interfering with your ability to work or attend school, creating debt in your name, or deliberately hiding important financial information.

If you believe you're experiencing financial abuse, prioritize your safety while taking practical steps to protect your accounts, document what is happening, and seek support.

Rebuilding after financial abuse often means starting a credit history from scratch. Kikoff's Credit Account reports your on-time payments to the major credit bureaus — free, and in your name alone.