Investment Fraud Targets People Over 50

Posted by Richard on May 23, 2024

Why are people over age 50 often the targets of fraud? Christopher Cox, chairman of the Securities and Exchange Commission, gives this answer, “That’s where the money is!” America’s 79 million baby boomers have about $8.5 trillion in assets.

The scams and pitches are constantly evolving. Today, they have a frightening level of sophistication. Some of the come-ons include:
* Free lunch seminars. The invitation says a financial expert will show you how to protect your nest egg. What he wants is a way to steal it.
* Community group fraud. Scammers join your church or club and say you both have the same interests, so why not invest money together.
* Fake contests. A caller says you have won a huge amount of money. All you have to do to collect is pay the high legal fee, taxes in advance, and other costs. There is no such contest.

Words of warning that indicate this could be a scam: “Your profit is guaranteed;” “it has an amazingly high rate of return;” “there is no risk;” “you can get in on the ground floor;” “you would be a fool to pass this by;” “the offer is only available today;” or “just make the check out to me.”