The National Center for Victims of Crime released a report in conjunction with the Financial Industry Regulatory Authority (FINRA) Foundation “Taking Action: An Advocate’s Guide to Assisting Victims of Financial Fraud“
According to a Report issued by the Financial Fraud Research Center, more than 30 million Americans are victims of financial fraud every year with an estimated $40 billion to $50 billion lost to fraud annually.
According to the Report, concerning financial fraud and fraud susceptibility in the United States, over 80 percent of people responding to the study, have been solicited to participate in a potentially fraudulent scheme, and over 40 percent cannot identify some classic “red flags” of fraud. Not surprisingly, Americans age 65 and older are more likely to be targeted by fraudsters and more likely to lose money once targeted.
The Report Found Typical Victims Where
- predominantly male
- financially knowledgeable (victims scored higher on financial literacy tests than non-victims)
- college educated
- self-reliant when it comes to making decisions
Victims also tended to have above-average income, and many older investors (ages 55 to 65) showed a willingness to engage in financially risky behaviors, and many did not checking the registration status of investment professionals or products, which is available on broker-check and at for investment advisors on www.sec.gov, and were scammed by free meal investment seminars, or relying on investment tips from people they know.
According to the report, although financial fraud can strike people from all walks of life, older Americans and those on the brink of retirement are especially vulnerable. The FINRA Foundation’s recent survey of nearly 2,400 U.S. adults age 40 and older Financial Fraud and Fraud Susceptibility in the United States — revealed that over 80 percent of respondents have been solicited to participate in potentially fraudulent schemes, and over 40 percent of those surveyed cannot identify some classic “red flags” of fraud. Additionally, Americans age 65 and older are more likely to be targeted by fraudsters and more likely to lose money once targeted.
Small Percentage Report Victims of Financial Fraud
Fraud researchers typically find that a very small percentage of survey respondents self-report that they have been victims of financial fraud. This also means that a small percentage of the victims of financial fraud take legal action.
The Survey also found that many people who are the victims of investment fraud not report the fraud because they did not know where to report it or they were too embarrassed.
Taking Action was developed, in part, to help increase the number of victims who report fraud and get access to assistance.
Guiliano Law Group
The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. If you own the common stock of TradeStation and purchased your shares before April 21, 2011, and wish to learn more about these claims, contact us at (877) SEC-ATTY.
