Seniors & people with disabilities
Some members of these groups depend on others for care and financial advice. This can make them targets of scam artists who try to befriend them in order to take advantage of their vulnerable position.
How is it done?
Scam artists may befriend seniors who may not have large social networks. They will invite them over for tea, send them Christmas cards and phone them. This extra attention fosters trust, and in their vulnerable position, the senior they may be taken advantage of.
Another way scam artists defraud seniors and people with disabilities is by gaining power of attorney. To help protect the finances of those who cannot protect themselves, a person may have a public trustee, or transfer power of attorney to someone of their choice. Seniors and persons with disabilities may be convinced to do this, but it can be dangerous if the person they trust turns out to be a scam artist who specifically targets them. If this happens, the scam artist can easily steal the money. The scam artist may also just become close and influence the senior or disabled person without going through the legal paperwork of gaining power of attorney.
Who are the victims?
Seniors may be looking to invest to help get through retirement and leave money for their children and grandchildren. Persons with disabilities may invest in order to be less reliant on others to pay for large expenses such as assistance and medical costs.
Elder Abuse
While anyone can be a victim of investment fraud or an unsuitable investment, seniors have less time to recover from a financial loss Elder abuse involving investments or securities can occur in a number of ways:
- An investment offered to a senior that is fraudulent or simply unsuitable for the senior’s risk tolerance
- Theft of funds by those in a position of trust
- Aggressive sales tactics used by sales representatives
Whether you are a senior, a family member or a caregiver you can take action and prevent financial abuse of elders. The CSA provides Canadians with resources to help seniors learn how to make informed investment decisions and avoid investment fraud. Specific CSA fraud prevention resources for seniors include:
Report it
Even if you are not considering an investment or haven’t given your money to a person selling the investment, take the time to bring suspicious activity to the attention of securities regulators. Your care and attention may save a friend, family member or member of your community from falling victim to a scam artist.
In BC, contact BCSC Inquiries. You can also anonymously report suspicious activity through InvestRight’s Report a scam webpage.
Residents from other Canadian provinces can find contact information for their provincial securities regulator at www.securities-administrators.ca.