Wall Street is not doing enough to protect senior investors. Financial
regulators warn that senior financial fraud is on the rise, and brokerages
and financial advisors are responsible for not doing enough to prevent it.
Senior Investment Fraud
According to financial regulators, senior investment fraud is on the rise
and financial companies are failing to protect senior investors. Three
out of four state securities regulators believe that senior financial
abuses have gone undetected and unreported for too long. Most seniors
are retired and depend on their
retirement investment funds to provide extra income for living expenses and healthcare. Poor investment
recommendations and financial losses often put seniors at significant
risk. According to the Virginia Department for Aging and Rehabilitative
Services, financial fraud and exploitation accounts for an estimated $1.2
billion each year. In an attempt to recover losses, many seniors turn
to investment loss attorneys for legal advice.
According to a recent NASAA survey, brokerage firms reported suspected cases of
senior financial fraud to adult protective services in 62% of cases, but failed to report it
to law enforcement and state securities regulators. Many brokerages and
financial investors reported that they had no policies in place to follow
for senior investors, and no way to identify investors who became incapacitated
by their financial losses. Unlike younger investors who have time to recoup
their losses, senior investors can suffer significant lifestyle hardships
due to financial exploitation and investment fraud.
To help prevent senior investment fraud, 50% of state securities agencies
have started legislation that requires brokerages and financial advisors
who suspect fraud to report it. In February 2018, a new rule takes effect
that will allow fund transfer delays if financial exploitation is suspected.
The new rule will also require brokerage firms to get a trusted contact
name for senior investors to use if diminished mental capacity is suspected.
New legislation will help to prevent senior investment fraud and claims
for losses commonly seen by investment loss attorneys.
Senior investors can take steps to protect their hard-earned retirement
savings from all types of loss, whether from legal investment opportunities
or investor fraud. Investment fraud impacts people of all ages, but senior
adults with retirement savings are particularly lucrative targets for
people who are looking to make money from deceptive practices. With millions
of baby boomers now in retirement, there are millions of dollars being
invested in senior investment funds.
Senior investment fraud is on the rise. For help with investment fraud
claims and losses,
contact Meyer Wilson at 888-390-6491 for a free consultation.