The Long View
Kathy Stokes: Why Investment Fraud Is Growing by Leaps and Bounds
Sep 3, 2024
Kathy Stokes, director of Fraud Prevention Programs at AARP, focuses on financial fraud education for older adults. She discusses the alarming rise of investment fraud, revealing $10 billion in reported losses in 2023 alone. Emotional manipulation and sophisticated scams are on the rise, targeting vulnerable populations. Kathy emphasizes the need for skepticism and the use of resources like BrokerCheck to verify advisors. Trusted contacts and proactive measures are essential in safeguarding against deception, along with stronger law enforcement coordination to combat these issues.
45:57
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Investment fraud targeting older adults has surged dramatically, with losses estimated at $950 million in 2023 largely due to emotional manipulation by criminals.
- Education about fraud recognition and proactive measures, like establishing trusted contacts, is essential to protect older adults from financial exploitation and investment scams.
Deep dives
Understanding Different Types of Fraud
Fraud can be categorized into two main types: financial exploitation and investment fraud. Financial exploitation typically involves known perpetrators, such as family members or caregivers who steal from elderly individuals, while investment fraud usually involves anonymous criminals posing as financial advisors or brokers. AARP's research indicates significant financial losses suffered by older adults due to such fraudulent activities, emphasizing the financial vulnerability of this demographic. Understanding these distinctions is crucial as it helps in creating targeted prevention strategies for each type of fraud.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
