According to the National Organization of Elder Abuse, approximately 1 in 10 Americans aged 60 and over have experienced some form of elder abuse. Some estimates for the amount of elders who are abused each year have reached as high as 5 million. One study estimated that only 1 in 14 cases of abuse are reported to authorities.
As we get older, financial scammers tend to become more prevalent. Elder financial abuse is one of the top forms of elder abuse and the rate is steadily growing each year. It is important to protect yourself and loved ones from potential fraud.
While you think about your future financial security, be very cautious where you choose to invest monies and with whom. The various types of investment fraud include pyramid schemes, unrealistic returns promised and unlicensed dealers.
The Financial Industry Regulatory Authority (FINRA), an organization that regulates firms and professionals selling securities in the United States, has implemented two new rules in early 2018 to help investment brokers and advisers protect the accounts of their senior clients (65 and older) from exploitation.
First rule, the broker must ask the investor (senior client) for the name of a trusted contact person. Allowing the broker to contact a trusted person when suspicious activity is detected. The second rule allows the broker to put a temporary hold on disbursements from an account if those disbursements seem suspicious. Allowing The broker time to investigate the investment.
FINRA also has the Securities Helpline for Seniors as a resource for investors. They have received more than 12,000 calls and recovered more than $5.3 million for seniors whose investment funds were illegally or inappropriately distributed since the helpline opened in 2015. For more information regarding the new rules and FINRA, visit FINRA.org.
If you or a loved one is in need of a skilled Elder Law attorney in the metro Jackson area, contact The Wade Law Firm, PLLC.
Metro Jackson areas we serve: Jackson, Ridgeland, Yazoo county, Hines county, Madison, Canton