Research and Resources

Key Findings of Older Investor Risk Survey

The FINRA Investor Education Foundation recently surveyed investors age 55-64 about behaviors that put them at a higher risk of becoming a victim of investment fraud. Key findings:

• 80% have not checked whether a broker ever violated any laws, and 70% didn't check their registration.
  
  
• Approximately 65% didn't check to see if the investment was registered with the SEC or appropriate regulatory body
  
  
• Three times (21%) as many known investment fraud victims have attended a free lunch investment seminar as a national sample of investors (7%)

Read the executive summary of the 2007 Senior Fraud Risk Survey. (PDF 79 KB)

Reality Check

A 2006 national telephone survey (PDF 42 KB) of older investors (55 and older) found that:

• 92% felt "somewhat" or "very" confident about managing their finances, and almost 80 percent described themselves as "somewhat" or "very" knowledgeable about investing.
  
  
• But fewer than half—only 44 percent—got a passing grade on a basic financial literacy knowledge test. The older the investor, the less likely he or she is to want to learn more.
  

Off the Hook Again: Understanding Why the Elderly Are Victimized by Economic Fraud Crimes, The Consumer Fraud Research Group

Survey Analysis (PDF 166 KB)

Powerpoint Presentation   

Audio: Real Life Sales Pitches (MP3) 

SEC Seniors Summit 

Resources

Investor Resources for Seniors, U.S. Securities and Exchange Commission

Seniors Investor Resource Center, North American Securities Administrators Association 

Money Links – Investing Your Money, Federal Citizen Information Center 

Fighting Back Against Identity Theft, Federal Trade Commmission

Saving and Investing, MyMoney.gov 

Be a Wise Consumer, AARP