As the baby boomer generation continues to age, financial abuse grows in
products like annuities and life insurance, a shift from fraud tactics
of years past.
Historically, unscrupulous advisors have avoided products like annuities
and life insurance, but that has changed drastically in recent years.
Fraudsters see the potential value in annuities and life insurance, and have
ramped up their efforts to capitalize on it.
Even legitimate insurance companies may try to push risky and potentially
unwise policies on their clients, like variable universal life policies.
People 65 and older are estimated to hold more than 70 percent of our nation’s
personal wealth. No wonder they are a prime target for scammers, especially
when you consider the fact that approximately 10,000 people reach this
age range daily.
Insurers have had to adapt their products to meet the growing demand, but
changes to products warrants a change to the products safeguards as well,
and the insurance industry is just now catching on. These safeguards not
only need to detect fraud, but prevent it from happening.
What is being done to curb the abuse?
Securities regulators have been strengthening their approach to the elder
financial abuse problem by proposing and enacting various laws that aim
to both encourage reporting of abuse and preventing it. For example, the
Financial Industry Regulatory Authority (FINRA) proposed a rule last year
that would require financial firms to do their due diligence to get the
name and contact information of a “trusted individual” for
each investor. You can
read more about those proposals here.
Meyer Wilson Talks About Financial Abuse of the Elderly
Meyer Wilson has many valuable resources on the topic of financial exploitation
of our nation’s seniors. To learn more, visit:
If you believe that your elderly loved one has become the victim of financial
fraud, contact the securities fraud lawyers at Meyer Wilson for a
free case review today.