Investor Protection Campaign
Research & Resources
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 percent have not checked whether a broker ever violated any laws, and 70 percent didn't check their registration.
- Approximately 65 percent didn't check to see if the investment was registered with the SEC or appropriate regulatory body
- Three times (21 percent) as many known investment fraud victims have attended a free lunch investment seminar as a national sample of investors (7 percent)
Read the executive summary of the 2007 Senior Fraud Risk Survey. (PDF 159 KB)
Read more about Baby Boomers and Investment Fraud. (PDF 179 KB)
The FINRA Investor Education Foundation joined with Stanford University's Center on Longevity and launched this resource for law enforcement, government and research groups studying financial fraud. Emerging technologies continue to fuel financial fraud, and this initiative supports and consolidates scientific research and connects it to practical prevention and detection efforts.
A 2006 national telephone survey (PDF 42 KB) of older investors (55 and older) found that:
- 92 percent 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.