Survey: Most Seniors Are Vulnerable to Investment Fraud and Exploitation

The top three financial exploitation problems identified by the experts are:

1. “Theft or diversion of funds or property by family members” (79%);
2. “Theft or diversion of funds or property by caregivers” (49%);
3. “Financial scams perpetrated by strangers” (47%).

As for “financial education, counseling, or personal finance management programs best tailored to the financial needs of older Americans and their families or caregivers,” the experts identified the following:

1. “Programs delivered by local professionals, such as caregivers, adult protective services workers, law enforcement agencies, and health care professionals” (71%);
2. “Programs delivered through senior centers and other facilities catering to older Americans” (65%);
3. “Programs delivered by senior oriented national and local organizations” (55%).

Over half of respondents (53%) said that “the available resources for seniors when selecting a financial advisor with appropriate knowledge to address their specific financial needs” are either not very effective or not effective at all. Under a third (30%) said the resources are somewhat effective or very effective.

Among the study’s other key findings:

• Half of respondents (51%) said that “veterans/military retirees face basically the same [fraud and deception] risks as other older Americans.”
• According to the experts, the best practices “in providing seniors financial literacy and robust, practical information on personal finance management” are:  (1) availability primarily in person (71%); (2) measurement of results in terms of improved awareness/understanding (52%); and (3) availability in person and via the internet (35%).
• Nearly three in five (58%) 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.” 
• By a margin of 36% to 26%, the experts said that “current efforts for maintaining the legitimacy, value, and authenticity of credentials held by financial advisors and planners” are “not very effective” or “not effective at all”.
• About six in 10 (59%) think existing accountability controls are not effective “when it comes to deterring the misuse of ‘senior advisor credentials’.”