Financial
Exploitation
A troubling trend
In the age of technology, reported losses from financial exploitation continue to increase. Fraudsters are finding ways to use digital assets, social media and artificial intelligence to scam investors, to the tune of more than $3.8B/year.
Janus Henderson has formed an exclusive partnership with Wayne State University to help financial advisors protect investors from financial fraud and exploitation.
Financial exploitation impacts
More than
$3.8B
Reported as lost by consumers to investment scams, more than any other category in 2022.
Nearly
$8.8B
Reported as lost by consumers to fraud according to newly released Federal Trade Commission (FTC) data, an increase of more than 30 percent over the previous year.
Adults aged
20-29
Reported losing money more often than older adults aged 70-79, the FTC found. But when older adults did lose money, they lost more.
Congressional testimony
In a testimony on November 16, 2023, Philadelphia attorney Gary Schildhorn tells a Senate panel about his story of an attempted scam against him, where his son's voice was spoofed by artificial intelligence.
Who is vulnerable?
Historically, the term financial exploitation has been associated solely with older adults, but the rise of new technologies means that any individual with substantial assets is vulnerable. This includes the
following:
Older Adults
ages 65 and older
Adults
with physical
or cognitive impairment
Teens
particularly through social media and gaming sites
Distressed Clients
both financially or personally, who may be distracted, lonely or overly trusting
Advisor Actions
Take steps to reduce your clients' vulnerability to ensure their financial plan is not in jeopardy.
Assign a teammate to become an expert in identifying vulnerable clients
Conduct a trusted contact and power-of-attorney audit on your client records and incorporate these into discussions
Partner with us to educate your team, clients and prospects Find your Director
Our partnership with Wayne State University
In an exclusive partnership, Janus Henderson has partnered with Wayne State University to help financial advisors protect investors from financial exploitation.
The partnership leverages the extensive resources of Wayne State University’s Institute of Gerontology and our strong relationships in the financial sector. The institute, led by Dr. Peter Lichtenberg, Ph.D., is the nation’s largest interdisciplinary organization dedicated to the field of aging. Dr. Lichtenberg is a national expert in financial capacity assessment and financial exploitation of older adults.
The program is dedicated specifically to combatting financial exploitation, a growing problem for older and vulnerable adults who are becoming more susceptible in the internet age. We hope to help protect more investors by extending education on the topic and providing useful tools to financial advisors.
Insights
Avoiding financial exploitation in the age of AI
Emerging technology like AI creates opportunities, but it can also present risks – including the increased risk of financial exploitation.
How advisors and clients can mitigate the risk of financial exploitation
Insights on the growing problem of financial exploitation and how advisors can help older adult investors mitigate the risk.
Study: Financial literacy and naming a trusted contact for brokerage accounts
A new study examines the relationship between financial literacy and naming a trusted contact for brokerage accounts.