Investment fraud and other forms of financial exploitation aimed at retirees often comes from trusted sources such as caregivers and family members as well as from scams, according to a report from the Investor Protection Trust based on a survey of financial planners, health care professionals, law enforcement officials and others who deal with the issue.
It said that the top three financial exploitation problems identified by the experts are: (1) “theft or diversion of funds or property by family members” (79 percent); (2) “theft or diversion of funds or property by caregivers” (49 percent); and (3) “financial scams perpetrated by strangers” (47 percent).
About four-fifths of the experts said that older persons in general are very vulnerable to investment fraud or financial manipulation and that most do not have the information needed to protect themselves. About three-fifths said seniors are “not very able” or “not able at all” to determine the legitimacy, value, and authenticity of credentials held by their financial advisors and planners.
The most effective strategies, they said, include programs delivered by local professionals, such as caregivers, adult protective services workers, law enforcement agencies, and health care professionals, followed by programs delivered through senior centers and other facilities, and programs delivered by senior oriented national and local organizations.
