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.
  

More Research

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

Outsmarting Investment Fraud Partner Toolkit

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

Choose to Save

Saving and Investing, MyMoney.gov 

Be a Wise Consumer, AARP