Risk Factors
Online Scams
First-time Investing
Elder Fraud
Fraud is most commonly associated with emails, messages, and phone calls that attempt to bait people into sharing their personal information. In recent years, the scams have gotten more complex. Emails might look legitimate, impersonate companies, or use real names or addresses.
Being alert to how a website or individual may have gotten your information is important, and refusing to wire money to anyone who you haven’t confirmed doesn’t have ill intent is important. From victims’ experiences, only talking to someone via email or alternative messaging platforms can be a red flag for fraud.
Putting money into investment markets can seem complex and out of reach for many people. Especially for those who don’t have lots and lots of money to invest, it is easy to trust someone who demonstrates to you that they can make your small-dollar investment go a long way.
People who have been scammed by false investment opportunities have described that the “brokers” that have reached out to them initially bait them with high returns, only to steal their money in the long term. Make sure that you verify the validity of brokers who you might invest with, using resources like FINRA and calling companies directly to verify that you are speaking with a real employee.
Criminals often prey on elderly people in their attempts to steal large sums of money from innocent victims. Because some people at advanced ages are unfamiliar with wire fraud or unsure about how to verify the validity of people who might call or email them, they can become more susceptible to scams.
In multiple reported cases, elders have been contacted in what has ended up to be fraudulent instances of threatening scams after the life insurance payouts they have received after their spouses have died. This is merely a cautionary tale, not meant to make any generalizations about these circumstances. But if you are an older person or a caregiver, be aware of suspect calls, emails, or messages.