Tag Archives for AARP

Fraud Victimization is a Chronic, Escalating Problem for Seniors

Published in the Pawtucket Times on March 8, 2021

Everyone has heard of the ago old proverb, “Fool me once, shame on you, fool me twice, shame on me.”  After being tricked once, hopefully a person learns from one’s mistakes and avoids being tricked in the same way again.   But for many victims of financial fraud, this is not the case.

Last week, AARP, the FINRA Investor Education Foundation (FINRA Foundation) and Heart+Mind Strategies released a four-phase study that identifies evidence-based ways to help repeat victims of financial fraud and their families to avoid being tricked again.

The study’s researchers note that over the years intervention strategies have generally remained the same, while the sophistication of the scammers continues to evolve.  This new study, “Addressing the Challenge of Chronic Fraud Victimization,” released on March 4, provides “new thinking” as to how to support victims of financial fraud and scams who are repeated targeted and fall victim to sophisticated scammers.

According to the study, some of the common tactics used savvy scammers include: playing upon fear, need, excitement, and urgency; making threats; creating a belief of scarcity; using the victim’s personal life and history to create trust; and using emotional stimuli, like hope of winning a prize or finding love, to lure in the victim. 

 The Chronic Fraud Victimization study, published during National Consumer Protection Week (NCPW), scheduled from February 28 to March 6, uses a behavior model to help illuminate factors that may contribute to repeat or chronic victimization by financial fraud schemes.

Looking at Chronic Fraud Victimization

According to AARP, “about one-in-ten U.S. adults are victims of fraud each year, losing billions of dollars annually to criminals through a variety of scams, including natural disaster scams, fake charities, fake prize promotions, and government imposter scams, such as Social Security and Medicare scams.”

“The drivers behind chronic fraud victimization have remained a mystery, so this study is an important step to being able to stop the cycle,” said Kathy Stokes, director of fraud prevention programs and leader of the AARP Fraud Watch Network in a statement announcing the release of the study findings on March 4. “Chronic fraud can give targets and their families a sense of helplessness. By gaining a better understanding of the target’s drivers, we are hopeful there can be more meaningful interventions to disrupt and end the cycle,” notes Stokes.

Last year, the FINRA Foundation and the AARP Fraud Watch Network engaged Heart+Mind Strategies to deploy a four-phased study of chronic fraud victimization to uncover evidence-based concepts for effective interventions. The study’s goal was to generate new ways of thinking as to how to best support the individuals and families repeatedly targeted and victimized by financial scams and fraud. The study’s researchers accomplished this goal by reviewing existing literature, interviewing subject matter experts, chronic victims of financial fraud, and family members of victims, and finally, hosting two expert roundtables as a part of the study.

“This research provides a new lens through which to identify key intervention strategies that could disrupt the cycle of chronic fraud victimization at one or more points along the path to victimization,” adds Gerri Walsh, President of the FINRA Foundation. “We hope it stimulates additional attention to the need for effective interventions that may reduce chronic fraud victimization,” she says.

The 13-page study found that chronic fraud victimization may be a consequence of chronic susceptibility due to certain situational factors that disrupt judgement and derail good intentions. The researchers say that one of the most effective ways to reduce chronic fraud victimization may be to reduce chronic susceptibility. However, they note that chronic susceptibility can be challenging to identify and address. The study offers ideas for managing other factors, such as triggers that elicit an emotional response and the ability to access funds, which may be more scalable ways to reduce fraud victimization rates or counteract the negative consequences associated with being a victim.

The study identified the importance of fraud education but acknowledged that victims or would-be victims do not consider themselves as such, and consequently may not seek out help or absorb anti-fraud messaging. So, creating more in-the-moment education and intervention opportunities could be more effective approach, say the researchers. Partnering with clergy and counselors, or locations such as hair salons and churches, could provide more powerful messages and tools for potential or repeat victims, they note.

The researchers concluded that preventing chronic fraud victimization is a challenging task in the absence of interventions and individualized support.  However, even after a person has been scammed,  intervention is possible to lessen chronic fraud victimization and its impact.

Tapping into Free Resources

Anyone who suspects a fraud or has a family member experiencing chronic fraud can call the free AARP Fraud Watch Network Helpline at 877-908-3360 or visit aarp.org/fraudwatchnetwork for more information. The AARP Fraud Watch Network is a free resource that equips consumers with up-to-date knowledge to spot and avoid scams, and connects those targeted by scams with fraud helpline specialists, who provide support and guidance on what to do next. The Fraud Watch Network also advocates at the federal, state and local levels to enact policy changes that protect consumers and enforce laws.

Investors with questions or concerns surrounding their brokerage accounts and investments can also contact the FINRA Securities Helpline for Seniors toll free at 844-57-HELPS (844-574-3577) Monday through Friday from 9 a.m. – 5 p.m. ET. FINRA staff can help investors with concerns about potential fraud or unsuitable or excessive trading; answer questions about account statements or basic investment concepts, and assist beneficiaries who are having trouble locating or transferring their deceased parents’ assets.

According to AARP, the Washington, DC-based aging group and FINRA Foundation have a long history of collaboration on research and programs that explore and combat financial fraud. Working together, the Foundation and AARP Fraud Watch Network’s fraud fighter call centers, have conducted outreach to more than 1.7 million consumers, enabling them to identify, avoid and report financial fraud.

National Consumer Protection Week is a time to help people understand their consumer rights and make well-informed financial decisions about money.

Tips on Shopping for a Financial Advisor

Published in the Pawtucket Times on February 8, 2021

As a result of living in times of economic uncertainty resulting from the ongoing COVID-19 pandemic, retirees are worried about how they can protect their hard-earned egg nest from the volatility of the stock market.  It is even now more important to be working with a financial planner who is watching your back and not putting their interest first.   

Just days ago, the Washington, DC-based AARP launched “AARP Interview an Advisor™,” free resource to help investors to assist investors in evaluating a financial advisor. This new financial tool enables older investors to better assess and understand the credentials of financial advisors and how they are compensated. SEC’s ‘Best Interest Fails to Put the Interests of the Investor First AARP says this online resource was created in response to a Securities and Exchange Commission’s (SEC) 2019 ruling that stopped a long-standing federal regulation requiring financial advisors to put their clients’ interest above their own. 

AARP and other critics of the Final Rule say that it fell short of defining exactly what that term means operationally. “The regulation explicitly states that it does not mean that financial advisors provide a fiduciary standard of care. Despite its name, ‘Regulation Best Interest’ does not require that financial advisors put their client’s interest above their own financial interests,” charges AARP.  The nation’s largest aging advocacy group warns that warns that sound financial advice from Fiduciaries won’t happen without a Code of Standard that requires the best interest of the client. AARP Interview an Advisor™ guides users through process of researching potential advisors and provides them with this valuable evaluation tools to help them evaluate their financial planner.     

Last year, AARP conducted a national survey to gauge investors’ awareness and views of the SEC’s Regulation Best Interest ruling and also their understanding of the fees and expenses they pay for investment products and financial advice.  

The survey findings, detailed in the recently released 27-page report, Should Financial Advisors Put Your Interests First, indicated a need to raise the awareness of the SEC’s new regulation and its impact on investing.  It also became very clear to the study’s researchers that investors require more assistance in vetting current and/or future financial advisors to ensure that their financial advisor puts their interests first and more education is needed requiring investment fees and expenses. 

AARP’s survey of 1,577 adults ages 25 and older who have money saved in retirement savings accounts and/or other investment accounts, conducted by NORC at the University of Chicago on behalf of AARP between Aug. 22, 2019 and Aug. 26, 2019 (prior to the COVID-19 pandemic), found more than 80 percent of American investors were not aware of the SEC ruling.  Upon learning about this regulatory change, four-in-five investors (83 percent) opposed the change. According to AARP’s survey findings, nearly 70 percent of investors have at least two investment accounts.

Among those having multiple accounts, 74 percent do not use the same financial institution to manage all of their accounts. The median amount that investors currently have in savings and investments ranges between $50,000 and $99,999. Additionally, 90 percent of investors either somewhat (52 percent) or completely (38 percent) trust the financial institutions or advisors who manage their investment accounts.  

Despite 68 percent of investors believing that they are somewhat (54 percent) or very (14 percent) knowledgeable about their investments, 41 percent mistakenly believe that they don’t pay any fees or expenses for their investment accounts. 

 Can You Trust Your Financial Planner? 

Yet the survey findings note that 58 percent of investors think financial advisors would choose to increase their earnings by selling their clients higher cost investment products even if similar lower cost products are available. “With millions of American families concerned about the financial uncertainty caused by the pandemic, it is crucial for them to be equipped with the best resources and information when selecting a financial advisor,” said Jean Setzfand, AARP Senior Vice President of Programming, in a Feb. 4, 2020 statement announcing the release of the new Financial Planning tool. “The new SEC regulation states that advisors must act in their client’s ‘best interest,’ but falls short of defining exactly what that term means,” she said. “

AARP Interview an Advisor™” is an online resource that provides guidance and a checklist for investors on how to assess the services and standards of financial advisors. Investors are invited to fill out a short survey that evaluates the potential advisor and compares them on a three-point scale. It also provides investors with advice on how to effectively communicate with a prospective advisor, assess their credentials and better understand how advisors are compensated.The COVID-19 pandemic has put many seniors off track in reaching their financial goal of building a big enough egg-nest to provide financial security in their later years.  Now its even more important for you to have a top-notch financial planner who has your back.

To view AARP’s Survey of retail investors about advisor-client relationships and fees, go to https://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2019/retail-investor-survey-report.doi.10.26419-2Fres.00342.001.pdf.

AARP: Vaccinate seniors now!Leaders respond. Add YOUR voice.

Published in RINewsToday.com on January 25, 2021

The debate heats up as to how Rhode Island should distribute its limited stock of COVID-19 vaccine. Days ago, AARP Rhode Island urged state officials and lawmakers to put seniors on the top of the list to protect their lives. Older Rhode Islanders should be a priority in getting vaccinated, says the state’s largest nonprofit. 

AARP Rhode Island, generally speaking, reserves sending public letters to public officials for the most critical of issues. Because of the pandemic, a critical issue, AARP is reaching out to its 132,000 Ocean State members and the public at large to demand immediate change.

“The message AARP wants sent to the Governor and State Leaders reads, in part, “Rhode Islanders 50 and older account for 98% of the state’s more than 2,000 COVID deaths. Yet only a quarter of vaccinations to date have been administered to older Rhode Islanders. You must revise the plan to vaccinate the most vulnerable among us. I am therefore calling on you to revise the state vaccination plan immediately to prioritize vaccinating our 50 and older population. There is no time to waste,” said AARP Rhode Island State Director Kathleen Connell.

A Call to Revising the State’s Vaccination Distribution Plan

Connell added, “Now that the state has responded to AARP Rhode Island’s call to make the state’s COVID vaccination plan and its execution more transparent, I am alarmed and dismayed to find data only now available reveals that just 25% of vaccinations to date have been administered to Rhode Islanders age 60 and older.”

“The current disparity — which flies in the face of federal health recommendations and causes great concern for many older Rhode Islanders and their families — is inexplicable, life threatening and unacceptable,” says Connell. 

AARP Rhode Island’s work is part of a nationwide effort, says Connell. “AARP is advocating hard to ensure every older American who wants to get the vaccine can get it,” said AARP Executive Vice President and Chief Advocacy & Engagement Officer Nancy A. LeaMond.

“It’s also vital that distribution plans for authorized vaccines are smoothly implemented,” LeaMond added. “There’s no time to waste: it’s time for full-scale mobilization, and any delays or early bottlenecks in distribution systems need to be addressed urgently. AARP remains committed to protecting the health and well-being of our nearly 38 million members and all Americans as we work together to defeat this virus,” she said.

Rhode Island leaders respond to AARP’s call

Speaker of the House of Representatives Shekarchi:

“We all want the most at-risk people, including our seniors, to have access to the vaccine absolutely as soon as possible. My father is 94, and it will be a tremendous relief to me and my family when he is protected,” said House Speaker Joseph Shekarchi (D-Dist. 23 Warwick). “President Biden’s timeline includes prioritizing access to the vaccine for those 65 and older, and it’s important that we comply with it,” he says.  

“I understand we need greater supply. Our House COVID-19 Vaccine Task Force will vigilantly monitor the distribution to ensure our state is doing everything we can to get the vaccine to those most at risk, particularly those 65 and older, as soon as possible, in cooperation with the federal government,” adds Shekarchi.

Dr. Chan, RI Dept. of Health:

In a Jan. 22 email vaccine update, Dr. Phillip A. Chan, MD, MS, the Rhode Island Department of Health’s (RIDOH) Consultant Medical Director, reported that 66,070 doses of vaccine had been administered in Rhode Island (52,925 first doses, and 13,145 second doses). “We are working hard to distribute vaccine, but supply remains very limited. Right now, we’re receiving enough first doses each week for about 1.5 percent of our population. While other states are in the same position, Rhode Island ranks among the top states nationally in terms of the rate of second doses administered,” he said.

As to the vaccination distribution timetable, Chan noted that nursing home residents and staff began to get vaccinated in December. “This week, we started to vaccinate in assisted living facilities and other congregate living settings.  By middle of February, we expect the vaccine will be available for adults 75 and older,” he says. 

According to Chan, there are 187,000 Rhode Islanders age 65 or older. “Since we are only getting 14,000 first doses of vaccine a week, we are taking a stepwise approach to this group as well,” he noted in RIDOH’s vaccine update.  “Please note that there is no action older adults need to take at this time to get a vaccine. When we are ready to start vaccinating this population, we will communicate with the public, healthcare providers, and community organizations to provide instructions.”

Incoming Governor, Lt. Gov. McKee:

Meeting outside Lt. Gov. Dan McKee’s Cumberland home, WPRI reporters, Eli Sherman and Brittany Schaefer, got insight into McKee’s thoughts about the state’s COVID-19 vaccine rollout strategy and issues surrounding this distribution. They report the details in a Jan. 23 WPRI blog article, “McKee: Teachers should get vaccine before others in Rhode Island.” McKee will move into the governor’s seat once Gov. Gina Raimondo is confirmed as U.S. Commerce Secretary.  

Here are some points from McKee’s interview in the Sherman and Schaefer’s blog article: 

“We need to really move up on the list teachers and the support staff in schools,” McKee said. “We’re not going to open the economy until we do that, and teachers are not going to feel comfortable by and large until we get them vaccinated.” (Teachers are not in the Rhode Island Department of Health’s phase one vaccination rollout)

“Prioritizing educators would inevitably delay vaccinations for all non-educators, and McKee did not name any other group Saturday that he thought should be prioritized. When asked specifically about adults 65 years and older, McKee said he expected they would also be prioritized, but underscored the state is only receiving a limited amount of supply of the vaccine from the federal government,” says the WPRI blog.

President Joe Biden encourages states to make it a priority to vaccinate people age 65 and over, along with grocery store workers and teachers. No specifics have been released yet by his administration. 

“I think it’s a supply issue, but that age group is a priority,” McKee said. “We’re going to follow the lead of the Biden administration”.  

Stay tuned as the debate continues on how Rhode Island should disseminate its limited COVID-19 stockpile – and what it can move to when the flow of vaccine becomes more generous.

Give Governor Gina Raimondo your thoughts as to AARP Rhode Island’s call for vaccinating people age 50 and over “immediately”.  Here’s the governor’s contact details:  Governor Gina Raimondo, 82 Smith Street, Providence, RI 02903; email: governor@governor.ri.gov; phone: (401) 222-8096.