With more than a third experiencing this "silent scourge"
Financial abuse has continued to escalate in Western Australia, with 36% of residents reporting such abusive behaviour in their relationship, a 3% increase from 2022 and a 7% rise from 2021, according to a new Bankwest report.
The Hidden Costs Report, an annual report commissioned by Bankwest to raise awareness of financial abuse, was released to mark 16 Days in WA, a government-led initiative to end violence against women.
Jodene Murphy (pictured above left), Bankwest GM of customer, marketing, and communications, expressed concern over the consistent increase in the rate of West Aussies reporting experiences of financial abuse, which she said correlates with the progressively challenging economic environment.
Understanding financial abuse
In a media release, Bankwest defined financial abuse as a form of family and domestic violence (FDV) that uses money to gain power and control over someone.
Sabine Winton (pictured above centre), minister for the prevention of family and domestic violence, said family and domestic violence can manifest in various forms, transcending postal codes, educational backgrounds, and social statuses.
“Financial abuse is a silent abuser that many people find hard to identify and even harder to know where to get help,” Winton said.
Sue Elery (pictured above right), minister for finance, commerce, and women’s interests, agreed that financial abuse is a serious and concerning issue.
“It can happen to anyone, regardless of age, income or financial capability,” Elery said.
Winton noted though that the gradual increase in the number of people reporting financial abuse suggests “greater awareness of this form of abuse and people’s willingness to reach out for help.”
Common forms of financial abuse, perpetrators
The survey of more than 1,000 WA adults identified the common forms of financial abuse, including using all of a partner’s pay for joint expenses while retaining theirs for personal use (62%), refusal to contribute financially (52%), and the exertion of complete financial control (50%).
Shockingly, one in six men (16%) and one in 10 women (11%) admitted to being perpetrators of financial abuse.
Gender disparities in perception and seeking help
Findings showed that women (55%) were more concerned about the widespread problem of financial abuse in Australia compared to men (41%). Women (68%) also find it more challenging to reach out for help, compared to men (52%).
“The research has also shown a clear disparity between the experiences of men and women when it comes to financial abuse, with the latter clearly feeling – and perceived as being – more vulnerable to abusive behaviours,” Murphy said.
“That’s one of the reasons why awareness is critical, because we also know from the research that more than half of those who reported having committed financial abuse only realised once presented with the definition.
Barriers to seeking support
The study identified the barriers hindering victims from seeking support, including fear of retaliation (73%), the risk of the perpetrator finding out (73%), and feelings of embarrassment (67%). These concerns are reflected in the reality that 34% of women victim-survivors did not seek support, a considerable increase from 23% in 2022, compared to 22% of men (21% in 2022), Bankwest reported.
Bankwest’s commitment and call to action
Murphy stressed the bank’s commitment to supporting those in vulnerable circumstances and encouraged those facing difficulties to reach out when safe to combat financial abuse.
“Bankwest is committed to supporting customers who find themselves in vulnerable circumstances, and I urge anyone experiencing difficulties to get in touch when it’s safe to do so, so we can support their individual needs,” Murphy said.
Combating financial abuse
Elery cited some government initiatives targeted at addressing and combating financial abuse.
“The recent launch of the Economic Abuse Reference Group aims to address the issues related to financial abuse in WA,” she said.
“Furthermore, there is the 2023-24 iteration of the Consumer Justice Strategy which sets out Consumer Protection’s guiding principles. One of its priorities is working collaboratively with government and community-based organisations to improve the financial literacy of survivors of family and domestic violence.”
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