Call Now For a Free Consultation:
(614) 502-6165

Emotions Make Older Adults More Susceptible to Fraud

The partners of Meyer Wilson

According to research from Stanford, the FINRA Foundation, and AARP, inducing older adults’ emotions increases the risk of them buying falsely advertised investments. Brokers who participate in misconduct often use the emotions of the victims to induce transactions. Seniors may be particularly susceptible to fraud.

The study examined the impact that excitement and anger has on one’s decision making when it comes to fraud. The research determined susceptibility in older adults between 65 and 85 years old and younger adults between 30 and 40 years old. After inducing excitement or anger in one group and not inducing any particular emotion in the other group, participants were shown various advertisements designated as misleading by the Federal Trade Commission. They were then asked to rate the believability of each ad and the likelihood to purchase it.

The research shows an increased intention to purchase in the older adults who had their emotions induced compared to the other group. In the younger adults, emotions did not play as much of a role in the decision to purchase. This means that heightened emotions don’t affect young adult investors as opposed to older adults.

Emotions induced were both positive and negative, but the direction of the emotion did not matter in the decision making.

At Meyer Wilson, we are dedicated to protecting elderly investors. You should be aware of the various methods fraudsters may use to induce securities transactions and investments. If you lost money due to investment misconduct, our securities fraud lawyers may be able to help you recover your losses. Call today to schedule your free consultation.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram