Go to navigation Go to content
Toll-Free: 866-827-6537
Phone: 614-224-6000
Meyer Wilson

Recovering Losses caused by Investment Misconduct

Toll Free 866-827-6537 (866-8-BROKER)

How to Help Mom and Dad Avoid Investment Fraud

An increasing number of older investors can say they've been sold an unsuitable investment, paid additional or "hidden" fees on an investment, or been taken in by securities fraud. In fact, seniors lost almost $3 billion on scams, schemes, and misrepresentation just last year, and they represented about 44% of all investor complaints in the US.

Why Do Fraudsters Target My Parents?

Investment scams target your parents because that's where the money is, and because fraudsters see seniors as an easy sell. Additionally, senior investors are vulnerable to investment fraud because of:
  • Cognitive impairments. Not only do elderly investors make their own financial mistakes as cognitive ability declines, but fraudsters take are more than happy to take advantage of those who seem confused and have memory trouble.
  • Loss of a spouse. If your Dad has always handled the budget and has passed away or become very ill, Mom may suddenly be in charge of the finances. This can be very intimidating, especially if there are additional cognitive impairments.
  • More time. Your parents may have more time to take calls or attend "free lunch" investment seminars, giving fraudsters a much better chance to charm your parents into their scams and Ponzi schemes.
  • Fear of being "rude." If a pitch turns aggressive, many elderly investors will bend to the pressure just to avoid being "mean." This is especially true in cases of affinity fraud where your parents often speak to the fraudster or his clients socially.

What Can I Do to Keep My Parents Safe from Senior Investment Fraud?

Helping your parents with their financial decisions can be tricky. They have always been the authority on money, and may have trouble turning over the reins to you. Here are some tips to gently give your parents a hand:
  • Ask questions. Find out what accounts they use, who their advisor or broker is, and what emergency and long-term plans they've made. Also, have them show you where to find the paperwork and passwords for each account.
  • Use online accounts. Showing Mom and Dad how to check up on their accounts online gives them an avenue to keep a better eye on finances. If they feel comfortable with allowing access, you may also be able to check in and watch for "red flags" they may miss.
  • Attend a meeting. Ask your parents if it would be okay to go to their next meeting with the broker or financial advisor. Meeting in person lets you see for yourself what's going on, ask questions, and show a potential fraudster that you're watching out for Mom and Dad.

If you're concerned that your parents have been taken in by an investment scheme, have been sold unsuitable investments, or are the victims of stockbroker misconduct, call the experienced FINRA lawyers with the law firm of Meyer Wilson today at 1-866-8-BROKER (827-6537) to schedule a free consultation. Also, to help open a discussion with your parents, request a copy of our FREE book: Five Signs of Investment Fraud ...And What to Do if it's Happened to You.