Survey Finds 43% of Americans Have Been Victims of Financial Abuse

Have you ever been a victim of financial abuse? It’s when someone you know assumes your identity or gains access to your personal information to steal money or open fraudulent contracts. If you’ve ever had someone you know make a transaction on your credit card, take out a loan, or sign a contract under your name without your knowledge, then you’ve been a victim of financial abuse. 

You may, however, take some comfort in knowing that you are not alone. 

We recently conducted a survey of 3,000 Americans to find out how many people have been in the same situation. The results show just what type of financial abuse people have experienced, the states where residents have been the most affected, and what victims think can be done better to mitigate it from occurring in the future. 

Worryingly, our survey found that 43% of Americans have been victims, in various forms, of financial abuse.

Financial abuse can occur in various ways, but no matter which way people have been affected, it’s not only about losing money in a one-off transaction. Ongoing financial abuse can also leave long-lasting financial woes, affecting things such as credit history and putting the victims in an ongoing cycle of abuse. 

When asked what type of financial abuse Americans consider to be the worst, the responses were as follows:

• Loans or contracts taken out in your name without your consent: 47%
• Unauthorized use of credit cards: 25%
• Denied access to bank accounts or money: 18%
• Forced to hand over income or savings: 10%

Interestingly, despite 43% of respondents saying that they had experienced some form of financial abuse, it took 11% of them a whole year to recognize the abuse, with an additional 17% saying it took several months to realize the exploitation.

Of those who had experienced financial abuse, 41% said it left them with a damaged credit score. Twenty-seven percent also said it made it difficult for them to access their money for daily essentials, while, alarmingly, 21% said it left them with significant debt.

With regard to taking action, only 24% of respondents admitted to having a very good understanding of their legal rights for dealing with the abuse. In fact, when it came to reporting monetary exploitations, there seemed to be several factors standing in the way. 

Survey respondents said their biggest barriers to reporting financial abuse were: 

• Not knowing where to report it: 31%
• Lack of evidence: 23%
• A belief that nothing would be done: 17%
• Embarrassment or shame: 14%
• Fear of retaliation: 12%
• Financial dependency on the abuser: 3%

While financial abuse appears to be an issue nationwide, what our survey has also revealed is that there is a greater need for better awareness and resources to help people prevent this type of abuse from occurring. 

Our survey found that victims of financial abuse are more concentrated in certain states than in others. According to our survey, residents in the following states were reportedly affected by financial abuse the most:

1. Tennessee: 71%
2. Mississippi: 60%
3. Wyoming: 60%
4. Alabama: 59%
5. Colorado: 58%

Here are the full state-by-state results of our survey: 

Here are some top tips from our experts for recovering from financial abuse:

• Record the abuse: Before you can take any action with regard to getting your money back or reversing a loan, you need to have accurate records of exactly what happened. Be sure to report the transactions to the police or any other necessary authority. You should also take screenshots or notes of the transactions that have occurred, and ensure that you have records of any relevant correspondence, including emails, phone call reference numbers, or copies of contracts.
• Get in touch with your bank: The first port of call to stopping any misuse of your credit cards or bank accounts would be to contact the bank directly. They may be able to reverse the charges or put a hold on your account while they launch an investigation. 
• Hire a professional: While there are certain costs associated with getting a lawyer involved, the benefits often far outweigh these. Legal professionals can assist you in finding a path for recourse. This could include getting back any money stolen from your accounts or getting out of contracts taken out falsely in your name. 
• Secure your accounts: Before continuing to use your accounts, make sure you secure them properly. You will likely need to change and update your PIN or login details to your account. You’ll also want to put in place some form of two-factor authentication so your bank can additionally verify that it is you who is using your account. 
• Secure your identity: If someone has used your ID or passport to apply for a contract, you’ll need to report this as identity theft. You may be required to get new personal documents and you’ll want to try and figure out how they gained access to this personal information in the first place. You may be storing your documents in a place that isn’t secure or you may need to additionally secure some of your other cloud-based storage options. Also, check that you have multiple copies of all your important documents saved somewhere safe, such as in password-encrypted files.
• Monitor your credit score: Your credit score helps determine which types of loans and contracts you will be granted. If you notice any suspicious activity that could be affecting your score, be sure to flag it. You don’t want an act of fraud to affect your long-term future.
• Get a financial advisor: Going forward, appoint someone you trust as your financial advisor. This person can help you to grow your savings, manage existing debt, and regain control of your finances.
• Have a safety net: Don’t keep all your money in one place. Opening up a second bank account or credit card will help ensure you always have access to some funds. Also be sure to have varied passwords for your accounts and not to store these passwords in an easily accessible or hackable location. 

“Most people are devastated when they find out that someone has taken loans out in their name or used their existing accounts without consent. It rocks your world. You don’t know who to trust and your financial foundation suddenly seems shaky,” said CardRates Finance Expert Erica Sandberg. “But it’s important to know that, as a financial abuse victim, the person who did this to you is at fault — not you.” 

Sandberg continued: “Take control over what happens next. Lock down your credit reports and credit cards and report the crime to the authorities. And definitely get the support you need, whether it’s to talk about how you’re feeling or proceed with rectifying damage. You don’t have to go through this alone.”

An online panel survey of 3,000 respondents based on age, gender, and geography was conducted in September 2024. Internal data sources were used to obtain population data sets. We then used a two-step process to ensure representativeness through stratified sampling and post-stratification weighting.