A Task Force has revealed that one out of five citizens over the age of 65 has been the victim of financial fraud. To detect the early signs of fraud and protect the older population from fallling prey to fraudulent schemes, the Elder Investment Fraud and Financial Exploitation Prevention Program (EIFFE Prevention Program) has teamed up the North American Securities Administrators Assocation (NASAA) and various medical associations to create safeguards. According to NASAA, there are common investment scenarios which elders and their families should be on the lookout for:

Common Investment Scam Scenarios

UNSUITABLE INVESTMENTS — What

might be suitable for one investor might

not be right for another. Securities

professionals must not recommend

investments that are inappropriate for a

customer’s age, risk tolerance and need

for access to the money.

PONZI SCHEMES — Ponzi schemes

amount to robbing an army of Peters to

pay a handful of Pauls. As the number

of initial investors grows and the supply

of potential new investors dwindles, the

Ponzi bubble bursts with the vast

majority of investors losing all or most

of their money.

AFFINITY FRAUD — In affinity fraud,

the senior makes an investment

because of a recommendation by a

“trusted” friend based on similar

backgrounds.

UNREGISTERED INVESTMENTS —

The senior is sold a stake in a new

company or enterprise and is told that

the investment “does not need to be

registered” with the state or federal

government.

UNLICENSED SALESPEOPLE — Those

who sell securities or provide investment

advice must be appropriately licensed. If

not, chances are they aren’t qualified to

offer investments or advice.

FREE LUNCH/DINNER SEMINARS —

Regulators find the majority of these

seminars are actually sales pitches.

SENIOR DESIGNATIONS —

Individuals may call themselves “senior

specialists” to create a false level of

comfort among seniors and then get

them to invest.

ANY SALES PITCH ACCOMPANIED

BY PRESSURE OR COERCION  

If you or a loved one has been the victim of elder investment fraud or elder securities fraud, you may have rights to recover your money back.

The attorneys at InvestorFraudLaw.com are here to help. Contact us at 800-806-1614 for a free consultation or visit us at www.investorfraudlaw.com.