Protecting Seniors: Investment fraudsters targeting seniors

Submitted by nsscadmin on

As we mentioned in our previous post on World Elder Abuse Awareness Day, Nova Scotia’s population continues to get older. There are more seniors in our province then ever before who are often specifically targeted by fraudsters.

Fraudsters will target seniors of all income levels. A fraudster doesn’t care how much money you have; they simply want to take as much of it as possible and get away without being caught as quickly as possible.

Wealthy older adults are targeted because scam artists know they are sitting on a large nest egg which can be exploited. Low-income older adults are targeted by scam artists who prey on their fears that they do not have enough money saved to retire comfortably. These vulnerabilities make them targets for scam artists promoting high return-low risk investments.

Over the last few years, the Nova Scotia Securities Commission has seen a major increase in crypto-related frauds. Many of these crypto fraudsters are targeting older adults. We’ve shared blog posts on several specific types of frauds that are becoming more common including:


Everyone should be aware of the red flags of fraud  that you can look for to identify and avoid fraud. Older investors should also be aware of some common tactics used by fraudsters when they target older persons. They can include:

Guaranteed high returns for low risk

If someone offers you an investment opportunity that guarantees high returns, it is a major red flag. No one can guarantee returns, as all investment have some form of risk. If they are offering high returns with no or low risk, it’s an even bigger red flag. The chance of higher returns always comes with increased risk. You can’t have the potential for high returns without the risk increasing as well.

This is a unique opportunity

Don’t be fooled by someone trying to talk you into an investment by telling you that you are among a select few people that have been included in this opportunity.

Don’t tell anyone else

If an investment opportunity is ‘confidential information’ that’s another red flag. This secret information isn’t verifiable because it’s almost always fake. This can also be used to try and stop an older person from getting independent help or advice regarding the investment offer.

This is a limited time offer

Scam artists want to separate victims from their money as quickly as possible. What better way then by telling them an investment opportunity won’t last or they have a limited amount of product to offer? Investment scams can routinely rely on the concept of scarcity to lure investors by pressuring someone to commit quickly, or they will miss out. Don’t let a scam artist play upon your fear of missing out to get you to hand over your money without properly thinking it over. Very few legitimate investments will require investors to act immediately, investors should always take adequate time to assess an opportunity before committing.

Retire comfortably and leave something behind for your family

Scam artists targeting older adults often play upon their fear of running out of money in retirement. They also play on people’s desire to help their family. With many older persons helping support their children, this has become even more prevalent. Don’t let a scam artist use your emotions against you and talk you into investing in a fraud.