Submitted by nsscadmin on
As we get to the end of Seniors’ Month let’s talk about investment scams that specifically target seniors.
As Canada, and Nova Scotia’s population continues to get older, the number of people that fall into the demographic of seniors keeps rising. In Nova Scotia for example, the 2021 census showed that 22.2% of the province’s population are 65 years of age or older.
It doesn’t matter if a senior is wealthy or low income, they can still be targeted by scam artists. Wealthy seniors are targeted because scam artists know they are sitting on a large nest egg which can be exploited.
Low-income seniors are targeted by scam artists who prey on their fears that they will not have enough money saved to retire comfortably. This can make them vulnerable to scam artists promoting high return-low risk investments.
Some of the ways seniors are targeted by scam artists are through:
Unregistered advisers or unregistered investments
There are also some common tactics used by scam artists when they target older investors. Some of these include:
Guaranteed high returns for low risk
If someone offering you an investment opportunity is guaranteeing 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 low risk it’s an even bigger red flag. The chance of higher returns always increases risk. You can’t have high returns without the risk increasing as well. High return-low risk investments do not exist.
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
Scams artists want to separate victims from their money as quickly as possible. What better way then by telling them an investment opportunity has a time limit? 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.
Retire comfortably and leave something behind for your family
Scams artists targeting seniors often play upon older people’s fear of running out of money in retirement. They also play on people’s desire to help their family. With many older persons helping to 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.
Scams artists targeting seniors often play upon older people’s 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 these has become even more prevalent. Don’t let a scam artist use emotion to talk you into investing in fraud.