On September 12, the Financial Industry Regulatory Authority (FINRA - www.finra.org) released a report titled Financial Fraud and Fraud Susceptibility in the United States. According to the announcement, the report “reveals that over 80 percent of respondents have been solicited to participate in potentially fraudulent schemes.”
According to FINRA Foundation President Gerri Walsh, “When it comes to financial fraud, America is a nation at risk. Fraudsters are very effective at reaching and enticing vulnerable populations into turning over their money, and far too few Americans are able to detect likely fraudulent sales pitches.”
Key findings of the report include:
- More than 8 in 10 respondents were solicited to participate in a potentially fraudulent offer. And 11 percent of all respondents lost a significant amount of money after engaging with an offer.
- More than 4 in 10 respondents found an annual return of 110 percent for an investment appealing, and 43 percent found "fully guaranteed" investments to be appealing.
- Americans age 65 and older are more likely to be targeted by fraudsters and more likely to lose money once targeted.
The report also noted that it is difficult for lawmakers to accurately gauge the scope of financial fraud because many victims of fraud do not report the crime. Reasons cited by the report for not reporting incidents include the claim that reporting the crime would not have changed the outcome, victims did not know where to report the crime or they were too embarrassed to report being a scam victim.
In addition to his columns on Examiner.com, Terry Ambrose (themysterywriter.com) also writes mysteries and suspense. The San Francisco Book Review said of his latest novel, “On all levels License to Lie justifiably earned this five-star rating!”