Statistics show that over two-thirds of those committing elder financial abuse are related to the victim in some fashion. Perpetrators of elder financial abuse rely on the trust that elders place in them in order to commit fraud. They also take advantage of the elder’s need for assistance to survive and the fact that advancing age may have impaired their capacity to make sound decisions on financial matters.
In addition to relatives, close friends, people with powers of attorney or other individuals who take advantage of their relationships with seniors in order to defraud them, stockbrokers and other investment professionals may also prey on an elderly person’s vulnerabilities to enrich themselves. These brokers and investment professionals may swindle elderly investors by embezzling funds or performing other fraudulent acts. When this happens, they can be held accountable through Financial Industry Regulatory Authority (FINRA) arbitration. FINRA is the main regulatory organization that oversees brokerage firms and brokers.
Financial professionals also have an obligation to protect their clients from the dishonesty of others. There are options available to financial advisors when elder financial abuse is suspected. If brokers and advisors fail to take measures to protect their elderly clients, they may also be held liable in FINRA arbitration.