By: Lorena Black

Financial Abuse, a longstanding method of control in toxic relationships, has now taken on a more insidious form in the digital age. Digital Financial Abuse represents a contemporary method of coercion, where perpetrators leverage technology to manipulate, monitor, or limit the financial resources of their Victims. In a troubling trend, digital Financial Abuse often goes unnoticed, allowing perpetrators to exert control without drawing immediate attention. This form of abuse, unlike its physical or emotional counterparts, can remain hidden from view, complicating efforts to address and combat it. Victims find themselves ensnared, struggling to attain financial independence or break free from abusive circumstances, as legal and social systems persist in downplaying the gravity of this pressing issue.

Digital Financial Abuse manifests in various ways, including outright theft and more insidious forms of economic sabotage. Abusers often exploit their Victims’ financial resources by gaining unauthorized access to bank accounts, credit cards, or digital wallets. This alarming behavior enables them to deplete funds, make unauthorized purchases, and monitor financial transactions in real-time, raising serious concerns about the safety and security of individuals’ financial information. Many individuals are turning to financial tracking applications or online banking alerts to keep a close eye on their partner’s spending habits, fostering a climate of ongoing oversight and control. In various situations, perpetrators compel their Victims to surrender their paychecks, digital passwords, or government benefits, effectively stripping them of access to their finances (Sharp-Jeffs & Cross, 2022). Economic sabotage is a prevalent issue, as abusers often take steps to intentionally harm a victim’s credit score. This can include maxing out credit cards, which can severely limit the Victim’s ability to secure loans, housing, or even employment opportunities.

The psychological ramifications of digital Financial Abuse are significant, frequently resulting in a sense of helplessness, heightened anxiety, and depression among Victims. Individuals without financial independence often struggle to escape abusive relationships, driven by fears of homelessness, poverty, or potential retaliation (Adams et al., 2023). A recent study conducted by Sanders in 2022 reveals a striking statistic: 78% of Domestic Abuse survivors who faced financial control indicated that their financial dependence led them to remain with their abuser for an extended period. Despite finding a way out, numerous Victims face significant challenges in restoring their financial stability. Their abuser may have wreaked havoc on their credit, pilfered their savings, or accrued debt under their name, leaving them in a precarious situation. The impact of Financial Abuse lingers long after the relationship has concluded, with many Survivors facing a prolonged journey of recovery from the economic devastation they have endured.

In today’s digital landscape, technology has facilitated the perpetration of Financial Abuse, making it increasingly difficult to identify and combat such actions. As digital banking, peer-to-peer payment applications, and cryptocurrency gain traction, abusers are increasingly equipped with a wider array of tools to exploit their Victims. Joint bank accounts, which were once seen as a testament to trust, can unfortunately transform into tools of manipulation in the hands of a controlling partner. Financial tracking applications initially created to assist couples in managing their finances have taken a troubling turn. These tools can now serve as instruments of constant surveillance, enabling abusers to keep a close eye on spending habits and impose punitive measures for any deviations from their strict financial controls (Westmorland et al., 2023). In a troubling trend, social media has emerged as a tool for abusers, with some utilizing public payment apps such as Venmo to monitor their Victims’ interactions. Meanwhile, others exert control over work-related platforms, effectively restricting their Victims’’ capacity to generate income.

Legal safeguards addressing digital Financial Abuse continue to fall short of what is necessary. Financial Abuse, a critical aspect of Domestic Violence, remains inadequately addressed in many legal frameworks, particularly when it comes to its digital dimensions, according to recent research by Cross and colleagues in 2023. In a concerning trend, banks and financial institutions frequently fall short in safeguarding Victims, as they mandate consent from both parties before taking action to close joint accounts or reverse unauthorized transactions. In a troubling trend, law enforcement agencies often fall short in their training to identify Financial Abuse, frequently dismissing Victims’’ concerns as mere “relationship disputes” instead of acknowledging the gravity of these serious crimes. Numerous Survivors seeking assistance often receive advice to merely “open a new bank account” or “get a job.” This guidance fails to acknowledge the enduring financial entrapment that abusers impose on their Victims. Experts warn that without more robust legal measures, abusers are likely to take advantage of technological gaps, perpetuating their control over Victims.

In the fight against digital Financial Abuse, experts emphasize the necessity of a comprehensive, multi-layered strategy. Financial institutions are urged to enhance protections for Victims of abuse. This includes measures that would enable individuals to separate joint accounts without needing consent from their partners, as well as the provision of emergency funds for those seeking to escape financial control. Digital literacy initiatives must focus on informing individuals about the dangers associated with financial monitoring and coercion. This education is crucial in equipping people to identify warning signs before they find themselves ensnared in an abusive environment. Employers have a crucial role to play in this issue, as they can provide essential workplace support for Victims who find themselves under economic control by their partners. In a significant move, experts are calling for the evolution of laws to encompass digital Financial Abuse within the framework of Domestic Violence legislation. This change aims to provide Victims with essential legal recourse against individuals who exploit their finances as a method of control.

In today’s digital landscape, Financial Abuse continues to be a manifestation of power, with its reach extending further than we have ever seen before. Controlling an individual’s access to financial resources fundamentally influences their decision-making, restricts their autonomy, and can trap them in a cycle of abuse. As technology advances, it is imperative that strategies for preventing and addressing Financial Abuse also adapt to keep pace with these changes. Individuals should never be forced to make the difficult decision between remaining in a perilous relationship and confronting financial ruin. Until financial control is acknowledged as a significant and prosecutable form of abuse, Victims will persist in their silence, their autonomy compromised by the very systems designed to empower them.

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References

Adams, A. E., Sullivan, C. M., Bybee, D., & Greeson, M. R. (2023). The impact of financial abuse on survivors of intimate partner violence: A longitudinal study. Journal of Family Violence, 38(2), 167-189. 

Cross, C., McGuire, M., & Richards, K. (2023). Digital financial abuse: How technology is enabling economic control in relationships. Journal of Cybercrime Studies, 14(3), 99-120. 

Postmus, J. L., Hoge, G. L., Davis, R., & Klein, A. (2023). The intersection of technology and economic abuse: A growing threat to survivors. Journal of Interpersonal Violence, 36(1-2), 113-137. 

Sanders, C. K. (2022). Economic barriers to leaving abusive relationships: Understanding financial dependency and coercion. Violence Against Women, 28(4), 555-578. 

Sharp-Jeffs, N., & Cross, C. (2022). The hidden side of financial abuse: Digital control and coercion in intimate relationships. Journal of Economic Abuse Research, 10(1), 67-89. 

Westmarland, N., Kelly, L., & Coy, M. (2023). The role of financial tracking apps in coercive control: An emerging form of digital abuse. Technology & Society Review, 15(2), 76-98.