In recognition of World Elder Abuse Awareness Day, regulators in Québec are calling on people to watch for and report financial exploitation of the elderly.
The Autorité des marchés financiers (AMF) notes that this sort of elder abuse includes fraud, unsuitable investments, theft by people in positions of trust and the use of aggressive sales tactics. It also warns that the elderly can be particular targets for these sorts of abuses.
“Anyone can be the victim of fraud. Unfortunately, seniors who are isolated are particularly vulnerable to scams,” said Louis Morisset, president and CEO of the AMF. “We’re taking action on a number of fronts, including using cybersurveillance to identify illegal distributions and providing tools to help the elderly protect themselves against fraud.”
The Ontario Securities Commission (OSC) recently released new research, which found that approximately 6% of Canadians over the age of 50 report that they have been victimized by financial frauds.
The AMF says that members of its financial education team regularly speak to seniors’ groups and people who work with seniors to help them recognize fraudulent scams and to urge them to report this sort of abuse. It also counsels consumers to do their research and to ensure that anyone selling an investment product or service, or insurance, is registered.
The AMF’s message of increased vigilance is echoed by the North American Securities Administrators Association (NASAA), which calls senior financial exploitation “the crime of the 21st century.”
“Elders remain a top target of investment fraud, and with one-third of enforcement actions taken by NASAA members involving senior investors, elder financial abuse continues to grow,” said William Beatty, president of NASAA and Washington Securities Director. “This often unrecognized and underreported form of elder abuse is an ever growing problem due to the amount of wealth seniors have accumulated throughout their careers and the steadily rising number of retirees.”
To help combat financial exploitation of seniors, Beatty called on families to open communication about finances and fraud. He also highlighted a resource on the NASAA’s website called “Conversation Starters,” which provides a series of open-ended questions designed to help families kick start conversations about budgeting, saving, investing and avoiding investment scams.
“Talking about money is never easy, but through our Conversation Starters program we provide questions to get you and your loved ones talking,” Beatty said. “Having meaningful conversations about investment management and what to do if fraud is suspected will aid in tackling the challenges confronting senior investors and help to ensure financial security around budgeting, saving and investing.”
Beatty noted that NASAA has launched a new initiative, ServeOurSeniors, which includes a website for seniors, caregivers, regulators and securities industry professionals; a training program for regulators on issues related to diminished capacity; and an outreach program to help front-line financial workers detect the red flags of elder financial exploitation and determine where to report cases of suspected fraud.