Download the following support materials:

Client: Field Guide to Preventing Elder Financial Fraud
Financial Professional: Why Fraud Matters to You
 

Why It Matters:
  • Financial fraudsters swindle $36.5 billion from seniors every year in the U.S.
  • Upcoming FINRA rules will provide members with means to better protect clients.
  • Financial professionals are in a unique position to protect America’s most vulnerable investors.

The financial exploitation of seniors has become a growing problem, with fraudsters swiping $35.6 billion from U.S. seniors every year. On February 5, 2018, a new FINRA rule — “Financial Exploitation of Specified Adults” — will go into effect.

Rule 2165 will provide financial professionals with a way to respond to “situations in which they have a reasonable basis to believe that financial exploitation has occurred, is occurring, has been attempted, or will be attempted.”

Additionally, amendments to Rule 4512 (Customer Account Information) will go into effect. This requires FINRA members to make reasonable efforts to “obtain the name of and contact information for a trusted contact person for a customer’s account.”

This gives financial professionals the ability to contact a customer’s designated trusted contact person and, when appropriate, place a temporary hold on a disbursement of funds or securities from a customer’s account.

Helping clients understand the various forms of fraud, what to look for, and where to find help can be invaluable. Today’s financial fraudsters are often anonymous, hiding behind deceptive schemes that prey on the trust, gullibility, or fear of unsuspecting victims. Even more disturbing are the often-overlooked threats perpetuated by those in a position of trust — otherwise known as familiarity fraud.

As a financial professional, you’re in a unique position to help protect your most vulnerable clients from financial fraud. Extend your value with our Field Guide to Preventing Elder Fraud. Additionally, you can help clients become more informed investors with resources from ServeOurSeniors.org.


Things to Consider:
  • Taking active steps to protect clients from fraud isn’t just the right thing to do; it could strengthen your professional bonds.
  • Learn more about the latest financial threats with our Field Guide to Preventing Elder Fraud.
  • The welfare of your clients’ assets could impact your business. Help them become more informed investors by sharing the Common Scams Targeting Seniors.

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