Fraudsters often take advantage of cognitive decline or impaired decision making in seniors, and many families don’t find out their loved one has become a victim of fraud until it’s too late. If you are concerned about your elderly parents or another family member, we encourage you to talk to your loved one about investment scams and learn more about spotting the signs of fraud.
The First Signs of Senior Investment Fraud
Unfortunately, it can be difficult to talk about financial matters and cognitive decline with an older parent—especially when some fraudsters pressure their victims to keep their investment strategy a secret. If this is the case, your first sign that anything is wrong may be in your loved one’s behaviors. For example, here are some of the first signs of senior investment fraud:
- They have mysteriously started withdrawing large amounts from his or her bank.
- They have suddenly chosen to cash out retirement accounts for a new offer.
- They talk about a new financial advisor or broker who is quickly becoming a family friend.
- They seem to be experiencing substantial or mysterious investment losses.
- They keep pumping money into an investment but can’t keep up with other bills.
Investment Fraud Awareness for Families of Elderly Loved Ones
As investment fraud lawyers, we see many clients who are elderly or who are meeting with me on behalf of their elderly loved ones who have been taken in by investment fraud or stockbroker misconduct. Unfortunately, senior investment fraud is a real problem across the nation, and it can take many different forms. Here are some common types of senior investment fraud we see:
Stockbroker misconduct. Some unscrupulous stockbrokers or financial advisors may attempt to take advantage of a client with declining cognition by making excessive trades to churn up commissions, recommending unsuitable investments, or other shady tactics.
Investment scams. Some con artists may try to play on retirement fears or the possibility of future medical concerns in order to manipulate elderly investors into a too-good-to-be-true investment scam, or they may prey on elderly widows who suddenly find themselves in charge of the household budget after years of marriage.
Ponzi schemes. The most effective Ponzi schemes usually target a specific group of people, and elderly investors are a vulnerable demographic for these scams. Additionally, some elderly clients have a long-standing business relationship with their brokers, and fraudsters may try to abuse this history of trust to sell senior investors on a Ponzi scheme.
To learn more about spotting an investment scam, please request your FREE copy of our helpful book, Five Signs of Investment Fraud …And What to Do if it’s Happened to You. This guide is a great way to learn more about financial fraud and open a conversation with your loved ones.
If you suspect that you or a family member has already become the victim of an investment scam or Ponzi scheme, reach out to our experienced investment fraud lawyers today. You can reach Meyer Wilson by filling out the confidential contact form on this page. We would be happy to review your case and provide further guidance in a completely free consultation today.