Is FINRA’s Senior Helpline Working to Combat Elder Financial Fraud?

FINRA recognizes that our seniors are especially vulnerable to financial fraud—is HELPS helping?

In 2015, FINRA launched a new program called HELPS, a hotline for senior investors with questions about the legitimacy of their investments. The program is intended to help combat elder financial fraud, which is rampant across the US, but especially prevalent in South Florida, which is already a hotbed of national and international fraud.

Senior investors are especially vulnerable because of health and memory problems like Alzheimer’s and dementia as well as a lack of education about the changing financial environment and new investment products. To make the matter worse, unethical brokers may particularly target seniors in order to take advantage of their vulnerabilities, aiming to convincing them to purchase risky and expensive investments, and, on occasion, attempting to directly steal their funds.

Has HELPS helped seniors?

It seems that even within its short lifespan, HELPS has been a useful tool to senior citizens trying to learn more about their finances, avoid questionable investment strategies, and recover funds lost to fraud. Many calls are as simple as teaching a senior how to use BrokerCheck, FINRA’s online broker information system, or checking out the legitimacy of a company that has solicited investments. However, HELPS hasn’t only helped senior citizens; the hotline has fielded inquiries from callers as young as 22.

How much money has HELPS saved senior citizens?

In 2015 alone, HELPS staff assisted callers in recovering three quarters of a million dollars in voluntary reimbursements from brokerage firms and other financial companies. By mid-2016, this number had increased to $1.6 million in voluntary refunds.

What problems affect senior investors most?

Senior investors are often financially undereducated and can get confused about a variety of investment and financial issues. The HELPS hotline has fielded many calls about payable on death accounts, which can often lead to financial complications if they contradict a will or other estate plans.

The hotline has also fielded calls about binary options, which are a risky proposition for seniors because they’ll either make the client a specified amount of money or nothing at all. FINRA notes that trading binary options is made even riskier by fraudulent investment schemes, many which originate in foreign countries. In some cases, fraudsters will even pose as members of regulatory organizations and accuse victims of fraudulent trading in order to convince them pay fake fines.

High-yield CD offers are another type of investment offer rife with cases of elder financial fraud. Often, firms will target seniors with CD offers that pay far higher rates than banks, then lure them to an office where salespeople will attempt to sell them risky and complex annuities which are usually uninsured by the FDIC.

If you have basic questions about the legitimacy of an investment, brokerage firm, or have questions about how to use BrokerCheck or FINRA’s other online resources, the HELPS hotline is a great way to find reliable information.

Experienced FINRA representatives can get you information about a variety of firms and investment products within moments, and can certainly save you a lot of hassle when it comes to trying to avoid fraudulent investments—no matter what your age.

However, if you have been the victim of securities fraud or have lost a substantial portion of your portfolio due to misconduct, you should consider speaking with legal counsel who can help recover your losses. Contact Silver Law Group for a free consultation today.