The F.B.I.’s Common Fraud Schemes webpage explains why seniors should be on the lookout for fraud. The generations that came of age in the 1930s, 1940s, and 1950s lived commonly taught to be respectful and dependable. Unfortunately, con artists prey on their victims since they know they won’t be able to say “no” or hang up the phone. Get the Best information about Cryptocurrency crime investigation.
Whether it’s because they don’t comprehend who to report it to, are too embarrassed to, or simply don’t care, older Americans are less likely to report fraud.
There are several reasons why older individuals become victims of fraud, as outlined in an article by Marlo Sollitto in his journal (1).
They buy because they hope to increase their return on acquisition; they trust the salesperson; they are pleased by the salesperson’s impressive credentials and titles; and they like the salesperson.
NASSA’s (North American Securities Administrators Association) Director of Communications, Bob Webster, communicates, “These designations can serve as an easy way for an unscrupulous sales agent or adviser to gain a senior’s trust, which is the first step in a successful fraud.”
According to the most recent survey, approximately half of all complaints received by state securities regulators are related to senior acquisition fraud. That percentage has increased from 2005’s poll, which found that 28% of fraud reports involved those 65 and older.
Some common suggestions for warding off fraud are presented here, along with my thoughts on why I find them mainly unsuccessful.
If you have doubts about the legitimacy of the individual contacting you, check with the national securities regulating authorities (FINRA or S.E.C.). The same is valid for obtaining information from your state’s insurance and real estate departments.
Dr. Wong believes that licensed someones commit the vast majority of investment fraud. Once a fraudster has committed enough schemes to draw the attention of regulators, only then will they be caught. Therefore, having a license does little to protect the investment.
Only put your money into the most prominent companies.
In Dr. Wong’s opinion, the Big banks and giant Wall Street corporations are responsible for most of the public’s losses and the subsequent collapse of the housing market, the stock market, and the economy. Worse yet, Main Street taxpayers foot the bill for around $1 trillion in bailout monies and $2 trillion in low-interest loans after Wall Street pushed for and won these sums.
Here is my recommendation on how to stay away from investment fraud instead:
DO NOT BE CHEAP. Over the next decade, a 4 to 6 percent return is acceptable. Invest what you CAN AFFORD TO LOSE if you want to achieve more than this.
BEFORE MAKING ANY INVESTMENT, STUDY IT. You have no right to complain if you don’t take the time to learn it. Only put your money into something you fully comprehend.
WATCH OUT FOR FALSE DOCUMENTATIONS. Just because someone has a Ph.D., J.D., or C.P.A. does not demonstrate they are trustworthy. These certifications may not be as common as others in the financial services business, such as Certified Senior Advisor. Still, they carry a lot of weight and are challenging to obtain.
Has this person authored any books or trained other experts in his field? At least 99.9 percent of the investment/financial folks will be eliminated this way. Analogy: You may feel at ease with your decision to get a hip replacement if you know that your orthopedic surgeon has written extensively on the subject and trained at least a thousand other doctors on how to operate.
Would you let a handsome, well-dressed man who claimed to be a “Certified Senior Medical Specialist” operate on you if you learned that he had paid $500 to a promoter for a weekend course to earn this “credential”? Your finances must be just as much a priority as your material well-being.
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