Financial abuse refers to unfair control on some one`s financial matters making him/her deprive of financial power. This is against ethical and legal rules to defraud any person because of his/her loneliness or any other dependence on the financial abuser. This major issue remains under the cover, unless situation goes to the limit calling legal help for the victim. Normally this happens among husband and wife, parent and children and often among friends in business partnership where one person having more power is taking charge of every financial right of the victim and making him redundant from financial benefit that he/she deserves. People often consider it their very personal matter and feel reluctant to disclose it.
In matrimonial cases, financial abuse happens when one party, normally the husband take command on wife`s personal property or make her dependent on him for every financial decision. This is a psychological way of suppressing the partner to maintain an undue influence. He may give her a nominal amount of spending, may keep check on her bank account and financial matters. An attempt to make her powerless with respect to finance. It is consider as most wise strategy to keep wife loyal and bound to her husband rules. Financial independence of wife is seen as threatening for husband. In many domestic cases, husbands have been seen disallowing job of wife.
In case of parents and children both parties may do the same with each other, situation and power will define who will suppress whom and take charge of finances by making him deprive of his financial rights. Either party may have fear that giving financial freedom may make the victim independent, which will negatively affect interest of financial abuser.
Among friend, financial abuse took place when one party take charge on profits earned or financial property, he make take money from the victim as personal favor ,which will eventually be forgotten, delayed or change into threats and humiliation. This also happen in case of merger, when financial abuser cleverly uses the power of attorney and take unjust financial benefit. Theft or control on cash or cash convertibles of the victim by unfair means is another way of financial abuse.
There are appropriate reporting and indemnifying procedure laid down by law everywhere to protect the weak and isolated people to protect their financial right. Any party who is being blackmailed by abuser should instantly report the matter to police and any local council where the offender can be made questioned and accountable to relive the victim from financial stress. That is the reason, in law every deal is preferred to be in writing with two or more witnesses present, who can give the evidence about subject matter of the deal among parties.
The impact of this financial abuse makes the relationship weak, unreliable and disrespect among themselves and often the relative and associated friends become effectives. Having a wide social network and awareness about all financial tactics to get victim of financial fraud is a way, up to a limit, that can protect the dependent from severe financial destruction.