Chamber Post: Elder Investment Fraud Part #1: Dont Let It Happen To You Or Your Loved Ones! (BERNARDS TOWNSHIP, NJ) If you are 50 years of age or older, you are part of a targeted group marketed for investment scams. Each year more than 24 million persons become victims of over 38 million fraud and attempted fraud crimes. Seniors are being targeted through the internet, mail, phone, in-home visits, and free financial seminars specifically tailored to large groups of seniors. Over 70% of people aged 50 and above have been approached fraudulently. Seniors can boost their physical independence by practicing good health habits. The most common investment frauds committed on seniors have involved; Unsuitable Investments - Seniors being placed in unsuitable investments by unscrupulous brokers/financial advisers (i.e. annuities and private placements. Affinity Fraud - When a senior makes an investment because of a recommendation from a trusted friend based on the fact that both individuals come from similar backgrounds. Senior Designations - Seniors being induced to invest by individuals claiming to hold a specialized license in managing the finances of senior citizens such as Certified Retirement Planner, Certified Senior Adviser, and Chartered Retirement Planning Counselor. Free Lunch/Dinner Seminar - Seniors are invited to Free Lunch seminars where they are sold unsuitable investments. Family & Friends - One of the most costly forms of elder financial abuse and investment fraud is perpetrated by trusted family and friends. Telemarketers - Seniors who live alone may be lonely and they often look forward to receiving telephone calls. They have time to listen and sometimes fail to consider whether the risk is worth the cost of companionship. Steps you can take: 1) Contact 1-866-I INVEST to find out if the broker/counselor is registered in NJ to sell securities or provide investment advice. 2) Review all invest materials with a third party you trust. 3) Allow yourself time to make a decision. Scams artists try to rush the sale by instilling fear. 4) Know the inherent risk and restrictions regarding your investment. Some are risky and can tie up funds for a very long time. 5) Dont become a courtesy victim. Many that have been taken by scam artists state they didnt want to be rude to the person soliciting the investment. Saying NO is your best defense towards protecting your assets. Dont be embarrassed to report if youve become a victim of fraud. Contact the NJ Bureau of Securities at 1-866-I INVEST. Here are some Red Flags to follow; 1) you cannot locate the salesperson to whom you gave your investment money or power of attorney over your account. 2) You wrote the salesperson a check in his or her name to purchase your investment. 3) Your account has experienced unexplained and/or excessive losses. 4) You no longer receive brokerage statements regarding your investment. 5) You signed investment documents that you did not understand. Be educated about these things happening everyday in every town. Be prepared to take action to stop those that prey on Seniors. This has been a public service announcement from Your Bernards Township Regional Chamber of Commerce!
Posted on: Fri, 30 May 2014 12:39:47 +0000
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