You can tell if your parents are at risk of elder investment fraud if they are pitched an investment opportunity that guarantees high returns with no risk. However, this is only one warning sign that your parents are at risk. Familiarizing yourself with other warning signs can help you protect your parent’s investments and financial stability.
If you believe your loved ones have fallen victim to investment fraud, reach out to a Columbus investment fraud lawyer ASAP. An attorney can take on your family member’s case and fight for the remedies they need to move forward. Let’s take a closer look at how to tell if your parents are at risk of losing money to fraud and how an attorney can help them pursue justice.
Understanding Elder Investment Fraud
Sadly, many investment professionals choose to prey on elderly victims. These dishonest financial advisors and brokerage firms take advantage of older investors who have healthy retirement accounts and life-long savings.
Due to deteriorating health, cognitive impairment, isolation, and the other challenges of aging, elderly investors are often vulnerable to this type of fraud, even from financial advisors they have relationships with. This makes it even more important that you learn to tell whether your parents are at risk of elder investment fraud.
Additionally, parents often find it taboo to discuss financial issues. By taking the initiative to speak to your parents about their finances and investments and share your concerns about the potential for misconduct, you can help them avoid devastating investment losses.
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Suspicious Financial Advisors May Put Your Parents at Risk of Investment Fraud
One way to tell if your parents are at risk of elder investment fraud is by learning more about the financial advisor or brokerage form they work with. By using the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck tool, you can learn more about the advisor your parents are working with to invest their money.
FINRA’s tool will show you the advisor or firm’s disciplinary history, past complaints, and whether regulatory action has been taken against them. If you find that your parent’s advisor has a lot of complaints or a history of unlawful practices, you’ll want to have a discussion with your parents about finding a new advisor.
In addition to using FINRA’s BrokerCheck tool, you should also ask your parents about their experience with their advisor or firm. Your parents may be at risk of losing money to fraud if they tell you one or more of the following things about their advisor:
- Their financial advisor asks them not to tell other people about their investment strategy
- They have trouble contacting their advisor, or the advisor fails to return phone calls
- They write checks that are directly made out to their advisor
Look Out for Investments that Sound Too Good to Be True
When discussing your parents’ investment portfolio and potential investment opportunities with them, beware of investments that sound too good to be true. Investment opportunities that sound too good to be legitimate are often fraudulent.
An example of an investment opportunity that is too good to be true is one that guarantees a high return with no risk. In the investment world, there is typically some degree of risk, so financial advisors who claim that an investment has no risk should be treated with extreme caution.
If you determine that your parents are at risk of elder investment fraud, you’ll want to calmly explain to them why they should consider switching to a new advisor or firm. Taking action now could stop your loved ones from suffering serious financial losses at a time when they are likely relying on their savings the most.
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Additional Signs that Your Parents are at Risk for Investment Fraud
In addition to looking out for suspicious advisors and investment opportunities, there are a number of other warning signs you should familiarize yourself with to determine if your parents are at risk of elder investment fraud. Your parents may be at risk if one or more of the following statements are true:
- Your parents have given control of or access to their financial accounts to another person
- Your parents have recently changed their Power of Attorney or Beneficiary
- Your parents put their money into a new investment opportunity, but they have not received statements or documentation about the investment in writing
- Your parents don’t review their statements or don’t ask questions about suspicious transactions
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Knowing how to tell if your parents are at risk of elder investment fraud can save them from serious financial losses. That said, sometimes, it’s impossible to stop predatory financial advisors and firms from engaging in fraudulent practices.
If your parents have suffered losses over $100,000 due to financial advisor negligence or broker misconduct, Meyer Wilson is here to help. Our firm has over 75 years of combined experience representing victims of investment fraud. We have what it takes to get the remedies your parents deserve. Contact us today to schedule a free consultation and learn more.
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