Financial abuse is increasingly being identified during routine financial, lending and tax work, placing brokers in a position to spot risks their clients may not yet recognise.
Researchers from UNSW Sydney say financial abuse is a common but often concealed form of family and domestic violence that involves controlling or restricting access to money, financial information and decision-making. It can involve bank accounts, credit cards, tax filings, business structures and government systems, and frequently remains hidden until a transaction, audit or debt issue forces closer scrutiny.
“Financial abuse can occur both before and after partner separation, which means it is an ever-present threat in the context of domestic and family violence (DFV),” said Professor Jan Breckenridge, co-convener of the UNSW Gendered Violence Research Network.
In practice, brokers may notice warning signs when clients have little knowledge of their own finances, cannot access bank accounts or passwords, have no control over wages or benefits, or are required to justify spending.
Other indicators include being named as a company director without consent, changes to insurance or utilities made without the client’s knowledge, being locked out of a myGov account, or tax refunds being used without permission. These issues can be particularly serious for older clients, where financial abuse is a common element of elder abuse involving family members or carers.
In many cases, these issues only surface when finances are reviewed in detail.
“There may not always be warning signs or red flags apparent to others or even the victim of the financial abuse themselves until there is a related crisis,” Breckenridge said.
Tax matters are a frequent point where financial abuse is identified. According to Ann Kayis-Kumar, founding director of the UNSW Tax and Business Advisory Clinic, issues often surface during tax preparation, audits or debt recovery, when missing records or unexplained liabilities appear. These may involve restricted access to income, financial decisions made without the client’s involvement, hidden assets, shifted debts, or business and financial structures used to block access to money.
She also noted that perpetrators may control dealings with accountants or tax agents.
“Although accountants and tax agents have professional and ethical duties to act in the best interests of their clients (including both spouses), in practice, we frequently see perpetrators controlling and gatekeeping the relationship with the family’s tax professional,” Kayis-Kumar said.
Once financial abuse is disclosed, Breckenridge said banks, insurers, utilities and government agencies have protocols in place to respond.
