It is very likely that your phone receives calls from scammers multiple times a day. Additionally, you probably see plenty of ads or websites that are obvious scams. However, there are some scams that are not so obvious, and it is not uncommon for scammers to target older adults in this country. Here, we want to talk about ways for seniors to avoid investment fraud. We are going to directly reference advice from the Securities and Exchange Commission (SEC) so that you can take the steps necessary to avoid falling victim to those looking to steal your hard-earned money.
Red Flags of Fraud
There are various red flags that seniors and their family members need to be aware of when it comes to any kind of investment opportunity. This includes the following:
- If it sounds too good to be true, it likely is. The age-old saying that “if it sounds too good to be true, then it is” definitely holds weight here. Any investment scenario that seems like a lightning rod that guarantees success is likely filled with false statements.
- There is no such thing as guaranteed returns. Anytime a person in the investment community guarantees returns, they are simply telling you a lie. There is no such thing as guaranteed returns when it comes to investments.
- Sleek websites mean nothing. Scammers have gotten creative, and this includes finding ways to put together sleek and professional-looking websites. Do not be fooled.
- SEND NOW pressure is a problem. If you are ever pressured to invest your money immediately or if somebody says you will lose the opportunity if you do not put some money in now, this is very likely a scam.
Tips for Avoiding Fraud
In order to avoid being scammed in a senior investment fraud, we recommend the following tips:
- Ask questions and find answers. Most perpetrators of fraud rely on the fact that people will not ask questions or search for answers when they are unaware of the topic. It is important to ask as many questions as possible, and do everything you can to find answers to your questions.
- Research, research, research. Get off the phone with any potential investment opportunity individual and start your own research. Ask friends and family members to help you with this process.
- Know the investment professional. Never do business with any person or company that you are unsure of. Try to stick with reputable companies and registered financial advisors when it comes to your investments.
- Take your time. Investing is not something that happens quickly, and you did not build up your nest egg overnight. Take your time to find the answers you need about any new investment opportunity.
- Avoid unsolicited offers. If you receive any unsolicited offers about investment opportunities, you will likely be better off throwing these in the garbage.
Get Help from a Financial Elder Abuse Attorney
If you think that you or somebody you love has been the victim of financial elder abuse, please seek assistance from a skilled attorney as soon as possible. An attorney who regularly handles senior financial abuse can fully investigate what happened, determine liability, and help hold those responsible accountable for their actions. It is important for victims in these cases to stand up for their rights and secure any compensation they may be entitled to.