The Financial Industry Regulatory Authority (FINRA) is a private, not-for-profit membership organization of U.S. broker-dealers that is charged with protecting investors and safeguarding the capital markets.1 FINRA is responsible under federal law for supervising its member firms and is under the oversight of the U.S. Securities and Exchange Commission (SEC).
As part of its mission to protect investors, FINRA launched the FINRA Securities Helpline for Seniors in Apri1 2015. Celebrating its 10th anniversary this year, the Helpline has assisted in recovering more than $9.3 million for seniors and other vulnerable investors.2
Over $28.3 billion is lost through elder financial exploitation annually.3 While that number reflects all financial exploitation it is estimated by the Federal Trade Commission that as the fourth-most-reported scam, investment scams accounted for over $5.7 billion in losses for 2024, with a majority of those losses incurred by senior victims and involving bogus cryptocurrency investments.4
Senior Investors are at Risk
Seniors fall victim to these investment scams which frequently use high pressure tactics, confusing explanations of the investment, and offer guaranteed returns or high returns with little or no risk.5
FINRA has responded to these alarming statistics by adopting rules that protect vulnerable investors. One such rule requires that brokerage firms ask the investor for the name and contact information for a designated trusted contact person for the account.
Investor Protection
A trusted contact may be a family member, attorney, accountant or someone else the investor trusts. By designating a trusted contact they authorize the financial firm to contact the trusted contact in limited circumstances, such as the firm’s inability to contact an investor.
Designating a trusted contact is voluntary. The investor does not have to provide this information. Naming a trusted contact “does not give the person any authority to act on your behalf, execute transactions or engage in activity in your account.”6 FINRA also has instituted rules regarding the financial exploitation of specified adults and about registered persons being named a customer’s beneficiary or holding a position of trust for a customer.
Helpful Resources for Investors
When a call is placed to the toll-free Helpline (844-574-3577) a specially trained and experienced FINRA staff member is available to assist the caller, answering questions or addressing concerns the caller may have about their brokerage accounts, investments, and other matters.7 The Helpline also takes calls from members and member firms who are able to share concerns and discuss with FINRA staff what steps to take if they suspect a senior client is being financially exploited. Many FINRA member firms actually have policies to guide staff in working with the Helpline when they suspect that a senior is being victimized.
Trusted Michigan Securities Law Firm Protecting Investors
Take action to safeguard your investor rights by contacting an experienced securities attorney. If you have questions about investment fraud, financial schemes, broker misconduct, or about how your broker is managing your account, please contact our Securities Law Firm located in Royal Oak.
Our securities attorneys have decades of experience in helping countless individuals regain undue investment losses. Call for a Free Case Evaluation today.
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1, About FINRA
Link: https://www.finra.org/about
2, 7 FINRA Securities Helpline for Seniors Marks 10th Anniversary With More Than $9.3 Million Recovered for Investors, 4/1/2025
Link: https://www.finra.org/media-center/newsreleases/2025/finra-securities-helpline-seniors-marks-10th-anniversary-more-93
3 10 Common Scams That Target Seniors and How to Avoid Them by Rachel Hartman, 2/2/2024
Link: https://money.usnews.com/money/retirement/aging/articles/common-scams-that-target-seniors-and-how-to-avoid-them
4 $12.5 Billion Reported Lost to Scams and Fraud in 2024, Older Adults Hit Hard by Christina Ianzito, 3/12/2025
Link: https://www.aarp.org/money/scams-fraud/older-adults-ftc-fraud-report.html?msockid=28663bb528cb6e663cfe2d8f29406fa8
5 Spotting and Reporting Investment Scams Targeting Older Investors, 2/5/2024
Link: https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/spotting-and-reporting-investment-scams-targeting-older-investors
6 Trusted Contacts
Link: https://www.finra.org/investors/investing/investment-accounts/brokerage-accounts#trusted-contacts