Protecting Older Adults from Financial Predators

It’s a sad truth that aging individuals, who’ve spent decades building their nest eggs, become prime targets for scammers—often losing substantial sums when victimized. The vulnerability isn’t universal though. Research from the FINRA Investor Education Foundation has identified specific behaviors that increase fraud risk among seniors.

Key risk factors include excessive engagement with unsolicited communications (opening all mail, especially sweepstakes announcements), answering unknown calls/texts, entertaining telemarketers, preferring high-risk investments, experiencing loneliness, and facing financial instability.

Protecting Yourself

Limit exposure opportunities. Cut contact possibilities by blocking unknown numbers, deleting suspicious messages, terminating telemarketing calls, and discarding junk mail immediately. When you spot spam, don’t just ignore it—block and report the sender.

Skepticism saves money. Investment guarantees don’t exist in reality. Be immediately suspicious of “risk-free” promises, guaranteed returns, or unsolicited investment opportunities. Those contests demanding upfront fees? Almost certainly fraudulent.

Research everything. Before committing funds, thoroughly investigate both the seller and product. Use FINRA BrokerCheck to verify credentials and employment history of financial professionals.

Combat isolation. Loneliness makes you vulnerable. Instead of engaging with online strangers (often scammers), strengthen existing relationships or build new in-person connections. Join community programs where you can interact safely with others.

Emotional awareness matters. Never make investment decisions while emotionally charged or rushed. Take time to reflect or, better yet, discuss options with trusted individuals.

Build financial resilience. Create a personal budget and emergency fund to reduce vulnerability. Many banks, libraries, and nonprofits offer free financial management resources if you need guidance.

Educate yourself. Basic financial literacy helps identify fraudulent offers. Learn to read account statements properly and add trusted contacts to your financial accounts for additional protection.

Stay informed about scams. Knowledge is your best defense. Organizations like AARP and BBB track current scams. Local news outlets often cover regional fraud attempts too.

Where To Get Help

If you have concerns about your investments, call FINRA’s Securities Helpline for Seniors (844-574-3577). You can file complaints about brokerage firms with FINRA or report potential securities fraud to the SEC.

Scam victims should report incidents to federal law enforcement through the FBI’s Internet Crime Complaint Center (for online fraud) and the Federal Trade Commission. State attorneys general, district attorneys, and local police departments also handle fraud reports.

Don’t forget—emotional support resources exist for those psychologically affected by fraud experiences.