Ahead of World Elder Abuse Awareness Day on June 15, the New Brunswick Securities Commission is highlighting the risk seniors face from financial abuse and investment fraud.
The NBSC says that seniors are often targeted to invest in unsuitable or fraudulent investment products. According to a 2007 study by the Canadian Securities Administrators (CSA), 43.3% of investment fraud victims are 55 years of age or older. As well, the elderly are also often at risk for other sorts of financial abuse, including theft, abuse of power of attorney privileges and misuse of their finances.
“Financial abuse and investment fraud is a real threat to New Brunswick seniors,” said Rick Hancox, executive director at the NBSC. “We encourage seniors and their family and friends to recognize the signs of abuse and fraud so that they can do something about it.”
Financial fraud and abuse can lead to other problems, including a loss of trust in others, social isolation, and health problems such as depression and anxiety, it notes.
“As our aging population increases, more seniors will become the target of financial abuse and it is important to bring attention to this issue,” said New Brunswick’s social development minister, Sue Stultz. “We must ensure our seniors are aware and take the necessary precautions to protect themselves and their financial future from this type of abuse.”
The NBSC highlights some of the signs of investment fraud, including promises of high or guaranteed returns with no risk; pressure to act quickly; and, evasiveness by the person selling the investment. It says that seniors suspecting a fraud should ignore unsolicited offers and report their suspicions to the regulator.