Seniors are the number one target of investment con artists. The files of state securities agencies are filled with tragic examples of seniors who have been cheated out of life savings, windfall insurance payments, and even the equity in their own homes.

How To Investigate Before You Invest

1. First, take time to check out the salesperson, firm and the investment opportunity itself. Extensive background information on investment salespeople and firms is available free of charge from the Central Registration Depository (CRD) files available from the Securities Division of the South Carolina Attorney General’s Office. This office can also tell you if the investment opportunity is properly registered as required in order to be sold in South Carolina.
2. Second, before you part with your hard-earned cash, get written information about the investment opportunity, review it carefully, and make sure that you understand all the risks involved. Any reputable offering should have written information available which should be willingly sent to you.
3. Third, do not be swayed by offers of unrelated advice and assistance that are merely efforts to develop a sense of friendship and even dependence. Swindlers know that many seniors are lonely, in need of companionship and eager to talk to someone. Don’t make the mistake of seeking this companionship from someone whose only real interest is to get his or her hands on your money.

Reporting Investment Fraud

Don’t let embarrassment or fear keep you from reporting investment fraud or abuse. Seniors who fail to report that they have been victimized in financial schemes often hesitate out of embarrassment or the fear that they will be judged incapable of handling their own affairs. Some seniors have indicated that they fear that their victimization will be viewed as grounds for forced institutionalization in a nursing home or other facility. Recognize that con artists know about such sensitivities and, in fact, count on these fears preventing or delaying the point at which authorities are notified of a scam.

It is true that most money lost to investment fraud is rarely recovered. However, there are also many cases in which seniors who recognize early on that they have been misled about an investment are then able to recover some or all of their funds by being a “squeaky wheel.” If you fear that you have been victimized, please contact the Securities Division of the South Carolina Attorney General’s Office immediately.

Become an Informed Investor