Two in five people in the UK may have suffered financial abuse, according to research from Aviva.
The research found women were more likely to experience such abuse with nearly half of women (47%) who responded having been targeted in this way by a partner, compared to 33% of men.
However men were more likely to speak about it with 53% saying they had been targeted compared to 34% of women.
Last year Johnny Timpson drew attention to the importance and severity of financial abuse in the protection market.
He set out a four-pronged plan which included an appeal to stop writing joint life cover and for insurers and the wider industry to fund building the legal case for a change to insurance law.
Economic abuse often presents itself in the form of intimate partner violence and involves the control of an ex-partner’s money and finances.
It can often leave victims with limited or no access to money when perpetrators take control of an individual’s money, spending, bank accounts, borrowing, or even restrict access to transport and technology to be able to work.
Pocket money and new contracts
According to Aviva’s research, of the respondents who said they suffered financial abuse, one in eight (12%) said the perpetrator took control of what they bought.
One in ten (9%) said their debit or credit card was used to pay for items without their knowledge while 7.5% received ‘pocket money’ from their own bank account – this rose to 16% of 18-24 year olds.
A similar number (7%) had contracts taken out in their name for the perpetrator to use such as mobile phones, credit cards, mortgages and loans. Some even made victims change the beneficiary on their will.
In four in 10 cases (39%) the main perpetrator of the abuse was a spouse or partner, but almost a quarter (23%) noted the offender was a parent, sibling, or a family member, with 14% attacked by their employer or a colleague.
Most victims (61%) indicated that their situation had worsened because of the cost-of-living crisis.
Lasting months or years
For just under a third of victims (32%) the abuse carried on for months, but a quarter (25%) said it happened for years, and 6% said it was still happening.
These findings were particularly relevant to women where 40% said abuse lasts for years, or was still happening, compared to 25% of men.
Men also seemed to recover financial resilience more quickly, with 60% recovering within a year compared to just 35% of women.
Three quarters (76%) spoke to someone about the incident – a quarter (25%) say they spoke to their friends and family and almost as many (23%) spoke to their bank, before speaking to the police (13%) or any other professional body, such as victim support (13%).
Insurers must be vigilant
Dr Nicola Sharp-Jeffs, CEO and founder of Surviving Economic Abuse, added: “This research reveals just how widespread economic abuse is in the UK. It highlights how for many and particularly women, abuse by an intimate partner can last several years.
“It also highlights how this form of abuse is rarely just a one-off event, but part of a wider pattern of coercive and controlling behaviour.
“With survivors almost as likely to speak to their bank as their friends and family, it’s more important than ever that banking and insurance providers are vigilant to this type of abuse and are aware of how perpetrators can coerce and exploit victims.
“Training is vital across all teams, from those in customer facing roles to those designing and implementing new products, to recognise and support victims at every stage and shut down opportunities for further exploitation.
“It’s also clear that the increased cost of living is taking its toll, with almost two thirds saying the crisis has worsened their situation. We’ve already seen firms taking proactive and innovative steps to support victim-survivors of economic abuse during these challenging times and we hope to see more of this in the new year.”
Alistair McQueen, head of savings and retirement at Aviva, said the insurer was extremely concerned to hear the findings and completely understood the importance of making sure it protected customers and employees from this type of abuse, especially those who are vulnerable.
“We communicate regularly about domestic abuse, including economic and financial abuse, to raise awareness and reduce stigma. Among other things, we continually train our people to recognise and respond to domestic and economic abuse,“ he said.
“We work hard to create conditions which minimise the number of times a victim-survivor needs to share information about their circumstances, and we are looking at our products and processes to ensure they protect the safety of those victims.
“Through our work with various industry bodies and charities, such as Surviving Economic Abuse, we continually look for ways to develop and improve our practices.
“This is especially true for customers made vulnerable by economic abuse where we focus on limiting instances that abusers can exploit or sabotage victims’ economic resources.”