Consumers’ fear of credit card fraud over retirement plan fraud is a “dangerous blind spot,” as retirement plan frauds are on the rise, warns a LIMRA Secure Retirement Institute study published Monday.
The study, Financial Fraud and Retirement Accounts: An Opportunity to Engage, Educate and Build Trust, showed that 83% of American cardholders are concerned about credit card fraud but only 53% of retirement plan savers expressed worries over fraud in their retirement plan.
The incidence of fraud is increasing among individual life insurance contracts, individual annuities and defined contribution retirement plans, LIMRA SRI found.
LIMRA SRI stated that more than a third of consumers expressed interest in getting more information on how to detect and prevent financial fraud, opening the door for more education from advisors.
The consumers surveyed indicated that they get their financial fraud prevention financial information from financial service companies, credit bureaus, financial advisors/planners and, lastly, companies that manage retirement savings plans.