Protecting Clients from Fraud

A couple shaking hands with their financial planner

Disclaimer: With Medicaid, VA, and insurance regulations frequently changing, past blog posts may not be presently accurate or relevant. Please contact our office for information on current planning strategies, tips, and how-to's.


Financial advisors are beginning to test their clients in order to look for signs that they might be at risk of making poor financial decisions. With over $2.9 billion annually being lost by seniors due to fraud or financial abuse, the importance to look out for a client’s wellbeing is becoming more vital.

Last year, two new FINRA rules were put into effect that clients give their financial advisors a trusted contact in case the advisor begins to see red flags of abuse or fraud. The other rule would allow financial advisors to put a hold on their client’s accounts if they believe their client is being exploited.

Congress has even passed a law called The Senior Safe Act to help encourage financial advisors to get trained to be able to notice red flags of possible abuse or fraud.