Sadly, some fraudsters will happily take advantage of older investors. While your parents, regardless of age, could run into any kind of investment fraud, older investors are particularly susceptible to:
Your parents may meet the perpetrator through their church, a club, or a hobby. This commonality is used to create trust and their similarity is a quick way to and and then take advantage of your parent’s trust.
"Free Lunch" Seminars
A common practice among investment professionals to lure elderly investors is offering a free seminar, including giveaways, a complimentary lunch, or similar "free" items for attending and listening to their sales pitch. The investment sounds great. The problem is that many of these seminars don't give all the details or may promote one investment, but actually offer a different investment. A free lunch is never really free and high pressure sales tactics are common in pursuit of a senior’s money, account information or other assets.
Phone Calls & Social Media
Phone calls, private messages on social media, e-mails, and text messages come through offering incredible returns or a great opportunity. Oftentimes online message exchanges can be personal and affirming and can be quite persistent, sometimes several calls or messages a day. Sometimes due to the persistence, they will eventually give in just to get them to stop harassment. Many seniors develop an affinity or trust with the messenger and the fraudster will use this relationship to get their hands on the money.
To learn more about elder financial abuse, watch our helpful videos.