Financial scams: new bad actors identified affecting mostly senior citizens


Despite the health crisis linked to the Covid 19 pandemic, proposals for loans, savings accounts, payment services, or insurance contracts from unauthorized actors are multiplying on the Internet. A new blacklist is established every day, including financial scams and technology scam lurking on the net.

In these first three months of 2021, 322 new websites or entities were added to the blacklist of portals not authorized to advise this type of investment. These entities offer fraudulent offers of credit, savings accounts, payment services, or fraudulent insurance contracts on the Internet via dedicated portals, social networks, blogs, or forums. And the health crisis due to the Covid 19 pandemic has not changed the situation.

The majority of the actors identified usurp the identity of an establishment or a financial intermediary duly authorized to market such products.

Do your research before investing.

If the name of an entity or site is not on the black list. It does not mean that it has the authorization to offer loans or savings accounts. Internet users must check whether their contact person appears on the register of approved financial agents.

Always find out about the companies or people who offer their services before committing. In the event of fraud, victims must file a complaint. And provide the competent judicial authorities with all possible information (references to money transfers, identified contacts, addresses, emails or emails, Skype, etc.).

The financial authorities also recommend contacting authorities by calling a dedicated number in their country and filing a report, even if they have not suffered harm to counter other fraud attempts.

The most affected are senior citizens.

With the aging of the population and the increase in life expectancy, investment professionals must adapt. The many financial authorities have just published a summary report on the marketing of financial products to elderly clients.

Ultimately, the objective is to limit the risks associated with the marketing of financial products to vulnerable elderly customers.

For the financial institution, the idea is to reduce the risk. The risk associated with providing advice that is inappropriate or inconsistent with the senior client’s needs. And to limit the risk of legal action.

On the client-side, the aim is to limit the risk of receiving inadequate advice or based on altered consent.

To achieve this, financial institutions are asking for a position of “vulnerability advisor”. This advisor should be via a financial institution linked to internal control systems.

At the level of advisers, in direct contact with senior customers, they should receive appropriate training.

It is certainly challenging to define the notion of a “vulnerable elderly person.” The criterion of age alone is not enough. But “a bundle of signs of vulnerability can raise questions about a client’s ability to express informed consent” jointly explain the financial policemen.

Professionals have until 2022 to present their progress on the subject.

In Conclusion

Unfortunately, seniors are not the sole victims. Many people require education regarding their security on the Internet these days, regarding the number and various types of scams.