Swindled By Elder Fraud
Never before in history have there been so many people over 60 years old with so much money. The majority may not have enough money, but the surge in senior fraud is becoming a national epidemic.

A survey of 2,600 financial advisors conducted in August 2012 by the CFP Board of Standards estimated that the average senior victim of financial abuse lost an average of $140,500. Scamsters disguise “educational presentations” to offer sweepstakes, cash prizes, free meals where they often tout unsuitable investment products.

These vehicles range from high-yielding, “guaranteed” investments that fail to deliver to legitimate products that are simply inappropriate for the specific person. For example, there may be many legitimate reasons to buy a variable annuity, but not if the client is in his 90s.

Sadly, the CFP Board survey found that 20% of advisors surveyed said they knew seniors who had been exploited by a guardian or power of attorney. If that were not enough, 35% of advisors told the CFP Board that at least one of the incidents of senior abuse they encountered was the work of someone the victim knew. In Sullivan’s limited experience, it tends to be a family member in difficult financial straits.
 

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