New research from the North American Securities Administrators Association shows that investment fraud complaints by seniors account for nearly half of all complaints received by state securities regulators.

The survey of state securities regulators shows that an estimated 44% of all investor complaints received by state securities regulators are made by seniors. In addition, the survey found that about one-third, or 31%, of all enforcement actions taken by state securities regulators involve senior investment fraud.

NASAA said that with the first wave of ‘Baby Boomers’ turning 60 this year, investment fraud among seniors could grow significantly in coming years. “As regulators, we must do all we can to ensure that their golden years are not tarnished by investment fraud,” said Patricia Struck, Wisconsin Securities Administrator and president of the NASAA.

“The current landscape facing senior investors is littered with slick schemes and broken dreams,” Struck said. “While our cases of senior investment fraud may not make national headlines, they are devastating in their impact to the victims and their families.”

“These early results show that senior investment fraud is a serious ongoing problem and we fear that it will only grow without targeted enforcement and enhanced investor education,” Struck said. “We will not tolerate the victimization of senior investors by con artists. The most effective weapon against senior investment fraud is a one-two punch of aggressive enforcement efforts combined with financial education to protect investors from unscrupulous individuals.”

The NASAA survey also found that unregistered securities, variable annuities, and equity-indexed annuities are the most pervasive financial product involved in senior investment fraud.

“While my colleagues and I currently see a proliferation of troubling schemes involving unlicensed individuals promoting and selling unregistered securities to seniors, we are also concerned about the way in which variable and equity-indexed annuities are marketed and sold to seniors,” Struck said. “Variable and equity-indexed annuities are legitimate and suitable investments for some, but we believe these products are unsuitable for many retirees and are being aggressively pitched to seniors through investment seminars nationwide.”