According to the North American Securities Administrators Association (NASAA), the ideal victim for an investment scam artist is an elderly widow. Con artists know that senior women are vulnerable after the death of their spouse. They will not hesitate to take advantage of the situation, especially when there is an insurance settlement involved.
The best way to avoid investment fraud is through education. Never make an investment decision without first doing your homework. For example, check out the broker or investment professional who solicited you. We have written extensively on this topic in our article, Reducing Your Odds of Financial Loss Starts with Choosing the Right Investment Professional.
Among other things, you also need to find out if the investment you are considering is registered. There are registration requirements for securities, brokers and brokerage firms. Read more in our article, Registration Requirements for Securities, Brokerage Firms & Investment Professionals.