According to the Center for Retirement Research at Boston College, financial scams committed against the elderly are up 62% over the past three years.
What is the explanation behind these alarming findings? Steve tells all and also shares how you can protect yourself in this week’s Two-Minute Retirement Solution.
We have a very serious topic this week, so I hope you’ll stay with me for all of it. It comes to us courtesy of the Center for Retirement Research at Boston College.
Financial and other types of fraud committed against seniors are skyrocketing. And losses are mounting!
The Federal Trade Commission recently reported that complaints of scams committed against the elderly are up 62% in just three years.
And researchers believe the real numbers are much worse because seniors are embarrassed to report these kinds of losses. They see being cheated as a sign of not being able to care for themselves anymore, so they keep it to themselves.
Boomers – all 75 million of them – are the prime targets of fraud because of their numbers, declining capacities, dependence on others and financial status. A large percentage are inheriting huge sums of money, investments and equity in homes.
The one scam that is outnumbering all other financial fraud by a 5-to-1 majority is unregistered securities.
These come in a variety of types: promissory notes, private placements, investment contracts and more. And all promise huge, ridiculous returns.
Techniques used by the scammers include calling late at night when you aren’t as alert, mentioning names of people familiar to you and/or an event like a recent wedding or funeral.
They use statements like “failure to act could be costly.”
They will offer you free meals and evenings out.
They use words like “guaranteed” and “high return.”
They will avoid questions about their location and licensing.
And they will often ask you to respond immediately.
One of the best tip-offs of a fraud is if the investment is so complicated you can’t understand it. It shouldn’t be that complicated!
If you are asked not to tell your friends or family about the opportunity, run as fast as you can away from it.
And of course, if it seems so good or too good to be true, it is.
Don’t let yourself be the victim of fraud. Most of us have no way to rebuild our nest eggs. If you’re unsure or don’t know what to do, do nothing. That will cost you zero.