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Senior Citizen Investment Fraud Study

New Senior Fraud Risk Survey Identifies Behaviors Putting Older Investors at Risk

Many investors engage in specific behaviors that put them at a higher risk of becoming a victim of investment fraud. In August 2007, the FINRA Investor Education Foundation surveyed investors age 55-64. Key findings include:

80% have not checked whether a broker ever violated any laws, and 70% didn't check their registration;

approximately 65% didn't check to see if the investment was registered with the SEC or appropriate regulatory body;

three times (21%) as many known investment fraud victims have attended a free lunch investment seminar as a national sample of investors (7%);

46% of older investors who have had an investment professional state a specific accreditation to advise on senior financial issues said the accreditation made them more likely to listen to the professionals advice;

58% of respondents felt that they had a below average chance of being taken in an investment fraud; and

75% believe they have an above average ability to resist high-pressure sales tactics.

Read the Executive Summary of the 2007 Senior Fraud Risk Survey.

The FINRA Investor Education Foundation Launches Campaign to Protect Older Investors

In July 2006, research funded by the FINRA Investor Education Foundation shattered the stereotypes of senior investment fraud victims. Not only was the fraud victim profile counterintuitive in many respects (for instance, victims were often financially knowledgeable men), but the influence tactics used by fraudsters were sophisticated and highly effective. These findings forced regulators and senior advocates alike to rethink how best to approach the challenge of equipping older investors with the tools and information they need to thwart fraudsters touting investment scams.

In response, the FINRA Investor Education Foundation is mounting a research-based, social change campaign designed to reduce the incidence of investment fraud among investors ages 55 and over.

Related Information:

FINRA Senior Citizen Investment Fraud Study (PDF)