Survey Confirms Investment Fraud Is Pervasive Among Seniors

by Wall Street Fraud on August 29, 2012

Investment fraud attorneyA recent survey of investment professionals confirms that investment fraud is taking a severe toll on seniors. The Senior Americans Financial Exploitation Survey found that more than half of the certified financial planners who participated have worked with an older client who has been subject to unfair, deceptive or abusive investment practices.

The survey, conducted by the Certified Financial Planner Board of Standards, found that victims of elder financial abuse lose an average of $145,000. However, only 16% of seniors ever report the abuse.

Below are several other alarming findings revealed in the survey:

  • Half (50%) were aware of older investors who have been offered high-yielding investments described as no-risk or low-risk;
  • Nearly three-quarters (74%) of CFP® professionals were aware of older investors who have been offered unsuitable financial products;
  • 58% were aware of older investors who have been subject to omission of material facts about financial products;
  • Nearly half (48%) were aware of older investors who have been subject to misrepresentations about financial products; and
  • 46% were aware of older investors who have been subject to negligence or lack of follow-up in connection with financial products.
  • The financial products involved in unfair, deceptive or abusive practice witnessed by CFP® professionals most often involved equity indexed or variable annuities (76%), variable life insurance (32%), mutual funds (29%), and universal or whole life insurance (28%).

This survey highlights that seniors are the most frequent targets for unscrupulous investment professionals. Therefore, it is imperative that investors keep a watchful eye on their retirement savings.

If you have been the victim of broker fraud or negligence, we may be able to help you recover your losses. Contact us today at 215-839-3953 for a free consultation.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud or negligence, please contact our securities fraud attorneys today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

 

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