Investors who have been victims of financial fraud continue to suffer after the financial damage is done. In addition to the anger, regret and betrayal a fraud victim feels, many also report the incident caused them at least one non-financial consequence including extreme stress, anxiety, depression and difficulty sleeping.
The newly released study commissioned by the FINRA Foundation found that the greater the financial loss, the greater the likelihood the victim would experience non-financial repercussions to a serious degree. According to the survey, 20% of the self-reporting victims stated the resultant financial difficulties lead to divorce or separation and nearly half blamed themselves for being victimized.
Victims also suffered from indirect financial costs, such as legal fees, late fees, and bounced checks and in 9 percent of respondents, bankruptcy. “Fraud’s effects linger and cause distress well after the scam is over,” said FINRA Foundation President Gerri Walsh. “For the first time, we have data on the deep toll that fraud exerts on its victims, and the results are sobering.”