Counselors Take Additional Measures to Protect Older Clients Against Fraud or Abuse

The new regulation is another reason why counselors keep an eye on the mental state of their clients.

Two new FINRA rules to protect older investors came into force last year.

One of them requires that financial advisers ask their clients a trusted contact if they have any warning signs, for example if they wish to invest their lifetime savings in bitcoin. . The other allows financial advisors to temporarily suspend the bank accounts of their clients if they suspect a holding.

To be sure, some older clients may find their advisors have exceeded expectations. Last year, a woman sued Fidelity, after the company froze her badets when she became concerned about her mental state. As a result, the woman stated that she was unable to pay her electricity bill, go to the dentist or take her dogs to the vet.

According to Wrona, counselors often have suspicious requests from older clients and do not know how to respond.

"A [client] will say: "I won the lottery, but I have to pay the taxes before I can claim the prize," Wrona said. If the customer asks for money even after the advisor has explained that it was a scam, he can do it. then temporarily suspend their holdings and investigate further.

More than a dozen states have also pbaded laws allowing financial corporations to suspend their payments when a financial abuse is suspected.

Last year, Congress pbaded a law called The Senior Safe Act, which encourages counselors to train in the detection of fraud and abuse and to inform law enforcement.

"Getting this training will put an end to a lot of financial abuse," said Cristina Martin Firvida, vice president of financial security and consumer affairs at AARP.