While people of any age can suffer financial losses resulting from investment fraud, older investors are often targeted. A survey initiated by the Financial Industry Regulatory Authority (FINRA) found that many older investors participate in behaviors that put them at risk.
The Senior Fraud Risk Survey evaluated investors with the intent to benchmark the normal behavior of investors in the 55 to 64 age bracket. Two different groups were surveyed—a national sample of Americans with at least $2,000 in securities investments and 101 people who were identified as investment fraud victims by law enforcement. According to the survey, approximately 80 percent of all the respondents did not inquire about any previous law violations that their broker may have had. Seventy percent admitted to not checking their broker’s registration and 65 percent stated that they didn’t confirm that their investment was registered.
Some of the other survey findings include:
- Approximately 60 percent of the victim sample selected a broker based on a recommendation from a friend, family member, co-worker or neighbor.
- 21 percent of the victims went to a free lunch investment seminar.
- 70 percent of the victims surveyed made an investment due to advice.
It is important to note that when referring to older investors, these are not people who are gullible or frail. They are individuals who may be self-reliant, college educated and have an above average income. If you have lost money due to investment fraud, Meyer Wilson may be able to help you.
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