Q. What advice may BBB offer on investment scams?
A. Great question, the economic climate is ripe for investment scams. Such scams hit consumers of all ages, but seniors are particularly susceptible. The Better Business Bureau and the Financial Industry Regulatory Authority (FINRA) warns that older investors are being targeted with increasingly complex investment scams involving unregistered securities, promissory notes, charitable gift annuities, viatical settlements and Ponzi schemes. All which promise inflated returns. Note: viatical settlement is a transaction in which a life insurance policy holder sells his/her policy to a third party.
Fraudsters who commit these scams know that seniors and others living on fixed incomes may have taken a hit in the past financial environment. Their products and pitches sound tempting to many seniors who have seen their retirement nest egg dwindle over the past few years.
Seniors and all investors, however, can educate themselves to avoid being a victim. The Better Business Bureau, along with FINRA offers the following tips:
– Do not be a courtesy victim. Con artists will not hesitate to exploit your good manners.