How Seniors Get Caught Up In Investments That Turn Out to be Fraudulent

As we are seeing more and more stories in the news about senior investors being the victims of investment fraud - some of them losing millions in one fell swoop - we have to ask why. As investment fraud attorneys, one thing we often hear from our elderly clients after the fact is that the fraudster "seemed so nice" or that "it was just hard to say no to him."

Many of our clients look back and can't believe they fell for the scam, but, as they say, hindsight is 20/20. Even if you suspect a scam, here are some reasons why it can still be extremely difficult to say no to a scammer:

• “I could miss out on this opportunity.” A lot of investment scams work because they dangle an enticing opportunity in front of investors, but those investors must “act now” or miss out.
• “I don’t want to burn any bridges.” Even if an opportunity smells a little fishy, many seniors see the fraudster as an expert who has connections – and sometimes even see the fraudster as a friend. It makes it difficult to risk that relationship, which adds additional pressure to give in to the pitch against your better judgment.
• “I don't want to cause a fight.” No one wants to make a scene or get into a fight. It’s amazing what people will do in the short term to try to avoid a fight, even if it means putting your long-term cash on the line.
• “I just wanted to help.” You want to help and be friendly, especially after a fraudster has spent some time and money buying you lunch and attending your son's birthday party. Scam artists are masters of manipulation, and they know that providing gifts and companionship puts pressure on you to reciprocate when they make a pitch.
• “I don't want to seem rude.” Again, if a scam artist has become a “friend,” then you don’t want to be rude by saying you’re not interested. If you’ve been asked several times, it can become increasingly difficult to decline an offer …and you feel like you’re the one not being friendly and making it into an “issue.” Remember that standing up for yourself isn’t rude; it’s survival.

If you have lost money to securities fraud, stock scams, Ponzi schemes, or any other kind of investment fraud, contact an experienced Ponzi scheme lawyer today at 1-866-8-BROKER (1-866-827-5297). We look forward to answering your questions and explaining your rights in a completely free, no-obligation legal consultation. If you'd like to learn more about avoiding senior investment fraud, read through our helpful book Five Signs of Investment Fraud ...And What to Do if it's Happened to You.