Elder financial exploitation is a growing problem. Many senior citizens have worked for decades, paid off their homes and saved money for retirement. However, these assets can make seniors a prime target for individuals who seek to financially exploit them.

Seniors account for 13 percent of the U.S. population, and according to the Virginia TRIAD, a cooperative effort of law enforcement agencies and senior citizen organizations, seniors make up 30 percent of consumer fraud victims.

Additionally, data from the National Adult Protective Services Association show that one in 20 elder adults experienced financial mistreatment occurring in the recent past.

Floridians age 65 and older who are looking to invest should be cautious. Financial scams can drain senior citizens of their savings.

A fraudulent annuity scam involves misleading investment practices targeted toward seniors. An annuity is a series of income payments made at regular intervals by an insurance company in return for a premium or premiums you have paid. Elder adults may be manipulated into purchasing an unsuitable annuity or replacing existing annuities with a new one simply for the scammer’s financial gain.

Uninvited postcards, free luncheon events and seminars can be used to entice potential victims. These mailers and presentations are often a guise to access your financial information. An examination of these events conducted by federal and state securities regulators showed that half included written material containing exaggerated or misleading claims, and 12 percent involved fraud.

There are warning signs. High-pressure sales tactics, such as “must invest now” or “this offer won’t last long” are classic red flags. Extremely complicated investment products can also be a sign of fraud. If the promoter asks for your net worth, current investments and banking information, walk away. Their business location can also be a clue. Fraudsters often use a P.O. Box address or “virtual” office.

You can help prevent financial fraud. Inquire with multiple professionals and find one who understands your goals. Make sure you ask for written material that fully explains the investment product being offered, and always ask questions about anything you don’t understand. Finally, remember to check the license of the person or company before doing business. Verify their license online with the Office of Financial Regulation or call us (850) 487-9687.

The best fraud prevention is an informed investor. Help us make Florida’s financial marketplace safer by doing your research before committing to any investment.

Drew J. Breakspear is commissioner of Florida’s Office of Financial Regulation