According to the AARP Investment Fraud Vulnerability Study, published by the AARP Fraud Watch Network, active, older investors who get involved in unregulated investments may be more vulnerable to investment fraud. 214 fraud victims were interviewed, along with 814 members of the public who are considered general investors.
The study said that there are appear to be certain traits that may identify why some people are more likely to become fraud victims, including:
· Usually men, age 70 or older.
· These men are often risk-takers.
· They’re more likely to value wealth accumulation as a sign of financial success.
· They’re typically open to sales pitches and to answering remote sales pitches.
Doug Shadel, the lead researcher for the AARP Fraud Network, noted that if an older investor is able to identify whether/not she has a predisposition toward risky conduct, this could make the person more mindful of that tendency and he/she might potentially avoid becoming vulnerable to fraud.
Shadel cautioned consumers to only work with brokers and investment advisers that are regulated.
A few other main findings, according to the study:
· More fraud victims than general investors believe that unregulated investments are among the most profitable ones.
· Almost six in ten fraud victims reported getting at least one investment sales call monthly.
· More than four out of 10 fraud victims made at least five investment choices within a year, while only one out of ten general investors made that many choices in that same timeframe.
· Almost half of the investment fraud victims surveyed said that they were told their investments would yield promised returns that were high or had guaranteed rates. They were later dismayed to discover that an investment was worthless or, possibly, that their funds had never been invested to begin with.
If you suspect that you or your elderly loved one was the victim of fraud, you should notify the police and your state attorney general’s office. You should also avail of a free case consultation with one of our elderly financial fraud lawyers to explore what legal options are available.
Although not addressed by this particular study, other risk factors that may make an older investor susceptible to financial abuse and fraud include, poor physical health, mental impairment, dependence on others, and isolation, the latter of which may involve not having enough of a community or support. A 2010 national study found that fraudsters are likely to be deterred when they know there are other people looking out an older investor.
Call An Experienced Senior Financial Fraud Law Firm to Explore Your Options
Even if a regulator brings a successful case against a perpetrator of elder financial fraud, it is important that you or your loved one work with an experienced senior fraud law firm who can help in trying to recoup the losses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today and ask for your free case consultation. We have helped thousands of investors in getting their lost investments back.
Retired persons who lose their money in a scam may not be able to earn those funds back, which can affect their ability to support themselves and take care of their medical expenses as well as cover their living costs into the latter part of their life. Unfortunately, the elderly remain a favorite target of fraudsters. Call one of our securities fraud attorneys today.