Approximately one in five Americans who are over 65 will suffer some form of elder financial abuse, and estimates suggest that more than $30 billion is lost every year due to investor fraud, caregiver abuse, and other forms of financial exploitation.
Philadelphia is getting serious about its elder financial abuse problem. As we noted in a recent blog post, the Philadelphia Office of the Securities and Exchange Commission announced that it would be hosting public awareness talks and meetings to combat the growing problem of elder financial abuse. That announcement was followed by the District Attorney for Philadelphia Larry Krasner's statement that he would be creating a special task unit targeting perpetrators of financial fraud against senior citizens.
Every year, new and more elaborate schemes appear to bilk older investors out of their life-savings. Fortunately, FINRA has committed itself to several early detection measures aimed at stemming the tide of elder financial abuse. The new measures also encourage broker-dealers to further supervise their own employees when it comes to suspicions of broker misconduct.