Roughly one in 18 "cognitively intact" older adults is victim to financial scams, fraud or abuse, according to a study in the American Journal of Public Health.
Brokers now have a couple of new weapons to help them battle financial fraud against older Americans.
- Now, brokers can put a temporary hold on a requested account withdrawal if financial exploitation is suspected.
- And, brokers are now required to ask existing customers, when accounts are opened or updated, for a trusted person the advisor can reach out to if fraud or mental decline is suspected.
Private Wealth Advisor Derrick Kinney said older people are especially targets for fraud.
“These changes are a long time coming as elder fraud has been a big issue for many years. What this does it forces more protection for the people when they’re at their most vulnerable..,” said Kinney. “Age plus assets equals a fraudster’s paradise. It’s very important that the older people get and the more money they accumulate to be more vigilant about protecting their money.”
Just one in 44 financial elder abuse cases are ever reported, according to the National Adult Protective Services Association.