Posted in: Senior Investors | Risky Investments |
One of the most common stereotypes is that the victims of investment scams are unusually ignorant about financial matters.
A recent study demonstrates that this and other sterotypes about invetsment fraud victims are not true.
The NASD commissioned a study in which telephone sales pitches made by brokers were recorded. The organizers of the study then tried to identify what characteristics victims of investment fraud shared:
The present study finds that the investment victims tend to have a different demographic profile than the general population. Among them are gender (more men than women) living situation (less living alone), marital status (more married) education attainment (more educated) and income (higher levels of income).
In fact, two thirds of the victims of investment fraud in the study were men, 70% were married, 69% had at least a college degree, and almost three-quarters earned more than $30,000 a year.
These victims were, however, unusually likley to have been the impaccted by a recent hardship such as a foreclosure, loss of a job, legal issues or medical issues. It appears that these events made them more vulnerable to fraudulent sales pitches.
These results help explain why all of our clients, and I mean all, have some shame and embarassment at being taken by stockbrokers and investment advisers. But, as this report confirms, smart people with assets are actually extra vulnerable to the confidence building manuevers of the stock firms.
We URGE you to talk with us about your retirement and investment losses, and know that your are not alone, and are not foolish for being taken by a firm, adviser or broker. In fact the very traits that have made you sucessful in so many aspects of your life made you an unsually good target for a bad broker or scam artist.
Read the full report at:
http://www.nasdfoundation.org/WISE_Investor_Fraud_Study_Final_Report.pdf
