News Release

SAINT JOHN (GNB) – All too often, seniors in the province are targets of financial abuse and investment fraud. The New Brunswick Securities Commission and the Department of Social Development remind New Brunswickers of these concerns as part of World Elder Abuse Awareness Day, June 15.

Financial abuse includes theft, abuse of power of attorney privileges and misuse of a senior's finances. Seniors are also often targeted to invest in unsuitable or fraudulent investment products.

“Financial abuse and investment fraud is a real threat to New Brunswick seniors,” said Rick Hancox, executive director of the New Brunswick Securities Commission. “We encourage seniors and their family and friends to recognize the signs of abuse and fraud so that they can do something about it.”

Almost half of investment fraud victims were 55 years of age or older (43.3 per cent) according to a 2007 Canadian Securities Administrators Investor Study, Social Impact of Investment Fraud.

“As our aging population increases, more seniors will become the target of financial abuse and it is important to bring attention to this issue,” said Social Development Minister Sue Stultz, who is also minister responsible for seniors, housing and community non-profit organizations. “We must ensure our seniors are aware and take the necessary precautions to protect themselves and their financial future from this type of abuse.”

Financial fraud and abuse can cause more than just money problems; seniors lose trust in others, can become socially isolated, and show signs of health problems such as depression and anxiety.

New Brunswickers who are exposed to investment fraud are most commonly approached by telephone, email or through a friend, family member or co-worker. Signs of investment fraud include:

●    being approached out of the blue with a "great investment opportunity;"
●    not fully understanding the risks involved in a particular investment;
●    high or guaranteed returns with no risk;
●    feeling pressure to act quickly; or
●    negative reaction from the person selling the investment when asking questions or delaying a response.

If these signs are present and investment fraud is suspected, report your concerns to the New Brunswick Securities Commission at 1-866-933-2222.

Seniors can take steps to protect themselves from financial fraud by hanging up the phone on unsolicited offers and by ignoring any inquiry into their finances or offer of investment opportunities from a stranger.

“When saying no, do not worry about being impolite to someone who may be out to steal your hard-earned money,” said Hancox. “Any suspicious investment offers should be reported to the New Brunswick Securities Commission. This will help protect you, and your friends and family from future scams.”

“Seniors should have concerns if they are being pressured to make unusual or significant financial decisions,” said Stultz. “We remind seniors that they should not provide personal or banking information, including passwords, to someone they do not know or do not trust.”

Signs of financial abuse or financial exploitation include:

●    someone that you may not know or trust asking for access to bank accounts or to be your power of attorney;
●    feeling pressure to give money when you know you should not;
●    not fully understanding where your money is going or unusual banking transactions;
●    suddenly changing a will; or
●    being isolated from friends or family.

If these signs are present and financial abuse or neglect is suspected, report your concerns by calling the closest regional office of the Department of Social Development.

LINKS:

●    New Brunswick Securities Commission 
●    Senior and Healthy Aging Secretariat
●    Public Legal Education and Information Service of New Brunswick