Aging Baby Boomers are Tempting Target for Annuity Fraud

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Many financial scams are designed to exploit seniors since many of them have the financial resources built up to provide for their retirement. This makes seniors a tempting target for annuity fraud, and this scam business is booming as Baby Boomers age.

As a group, Baby Boomers command more than $8.5 trillion in investable financial resources. Additionally, research group Cerulli Associates estimates that this group will inherit at least $7 trillion from their own parents.

According to advocacy group Consumer Action, people 60 years of age and older make up about 15% of the population, but are the victims of 30% of fraud. As the Baby Boomer generation approaches retirement age, the percentage of seniors in the population will rise, creating more opportunities for fraud.

One of the more common forms of financial abuse is annuity fraud. Annuities are a type of investment tool where an investor provides a set amount of money, and will get a set amount of money back at a specified later date. Life insurance is the archetypal annuity. However, the fraudulent forms of annuities may be designed to make it very unlikely that an investor will ever see a return on their investment. For example, some fraudulent annuities may be set up in such a way that a senior, or even their survivors will be unlikely to ever see the money again.

Fraudulent annuities are often peddled at seminars and gatherings of seniors. They may accompany lavish meals or other incentives to lure seniors in. Some may target veterans or those on a fixed income. However, a major red flag is that many such seminars may forbid seniors from being financial advisors or brokers. Additionally, real annuities may only be sold by registered brokers. Annuity “dealers” or “brokers” are a potential red flag, since they are probably not registered.

In the case of fraudulent annuities and other forms of financial exploitation, civil action may be the only way for victims to get their money back. Legal action may compel fraudsters to return the money they have bilked from seniors with fraudulent annuities.

Take Legal Action Against Senior Annuity Fraud

If you or a loved one have lost money to a fraudulent annuity, you may be reluctant to come forward. Even though anyone can fall for such a scam, people may feel embarrassed that they were taken in. But you need to remember that scammers are banking on this, and this is part of how they get away with their crimes.

If you feel you’ve been victimized by scammers, you can take your first steps to fight back by visiting the Life Insurance Claims Lawsuit & Annuities Fraud Class Action Lawsuit Investigation. Here, you can enter information about your situation for a legal review by a trained expert with a background in this type of litigation. The initial consultation is completely free of charge, and from it, you can receive additional guidance on the best steps to take in your exact situation.