It is estimated that 1 in 6 women in the UK have experienced economic abuse by a current or former partner. In the UK alone, at least 20% of reported cases of adult abuse are financial related.
The ongoing impact of financial and economic crime on financial institutions(FIs) and society as a whole, requires firms to continuously adapt their prevention and response mechanisms. Regulated firms in the UK continue to heavily invest in economic crime prevention, specifically on technology and resources to minimise the associated loss and damages.
However, a lesser known, but growing and far more devastating phenomenon is that of economic abuse. Too often occurring behind closed doors, it is estimated that 1 in 6 women (circa 5.07 million of the UK population) in the UK have experienced economic abuse by a current or former partner. In the UK alone, at least 20% of reported cases of adult abuse are financial related. Numerous lockdowns, coupled with the Cost of Living Crisis in the UK, have made matters worse for victim-survivors, highlighting a crucial role that FIs can play in both mitigating and minimising economic abuse.
Financial and economic abuse are not typically associated with the standard perception of financial crime therefore it is important for FIs to understand the issue in greater detail and take steps to address it