While senior investment fraud has long been a major concern, a recent study suggests that senior investors now have even more reason to do their due diligence and carefully monitor their investment portfolios. According to the North American Securities Administrators Association’s (NASAA) Seniors & Financial Exploitation survey published August 2017, while more seniors are aware of the risk of investment fraud, fraud schemes appear to be on the rise, and the vast majority of senior investment fraud schemes still go undetected until it is too late.
Key Statistics from NASAA’s August 2017 Seniors & Financial Exploitation Survey
Here are some of the key statistics from NASAA’s August 2017 pulse survey, which reflects the answers of securities regulators across North America:
- 97 percent of authorities believe that there is greater awareness of senior investment fraud and financial exploitation today than there was a year ago.
- 29 percent of authorities say they have seen an increase in complaints of senior investment fraud and financial exploitation over the past year, compared to just three percent that have seen a decrease.
- 75 percent of authorities have received complaints of senior investment fraud and financial exploitation since enacting new legislation designed to protect vulnerable adults.
- 77 percent of authorities say that firms have been successful in using this new legislation to prevent disbursement of seniors’ funds in cases of suspected fraud or exploitation.
- 97 percent of authorities believe that, “most cases of senior financial fraud go undetected rather than being discovered before they cause serious problems.”
- 75 percent of authorities believe that brokerage firms and investment advisors can do more to protect senior investors against fraud and exploitation.
- 82 percent of authorities believe that seniors in the Silent Generation (those born between the mid-1920s and mid-1940s) are the most vulnerable to investment fraud and financial exploitation. The remaining 18 percent believe that Baby Boomers (those born between the mid-1940s and mid-1960s) are the most vulnerable.
Preventing and Recovering Losses from Senior Investment Fraud
For seniors and their loved ones, protecting against fraudulent investment losses can be a challenge. All senior investors should be aware of the red flags for investment fraud, and they should do their best to regularly monitor their portfolios. When choosing brokers and investment advisors, seniors and their loved ones can use FINRA’s BrokerCheck and the SEC’s Registered Investment Professional Database to do their research, and they should ask for referrals as well.
If you are concerned that you or a senior family member may have fallen victim to investment fraud, it is important that you seek help as soon as possible. Acting quickly can often significantly improve your chances of securing a financial recovery. At Zamansky LLC, we represent investors nationwide, and we are happy to help you understand your situation in a free and confidential consultation.
Request a Free Consultation at Zamansky LLC
To speak with a stock fraud lawyer at Zamansky LLC, please call (212) 742-1414 or contact us online. With offices in the heart of Wall Street, we have decades of experience representing investors in stock fraud lawsuits and securities arbitration. It costs you nothing to learn about your rights, so contact us today to find out if you or your loved one may be entitled to a financial recovery.