Do you know a senior who has fallen victim to investment fraud? As part of Seniors’ Week (June 6 – 12) and World Elder Abuse Awareness Day (June 15) we thought our blog should remind seniors, and their family members and caregivers about an often under-reported aspect of abuse – financial abuse.
How does it happen? Elder abuse involving investments occurs in a number of ways. Maybe a senior was offered an investment opportunity that was fraudulent or simply too risky for them. Perhaps a salesperson was extremely aggressive when pitching the opportunity to the senior. Whatever the approach, it’s important that seniors and those who care about them know what red flags to look for and how they can take action to prevent this type of abuse.
Red Flags of Investment Fraud
“Guaranteed high returns with no risk! Act now before it’s too late! And shhh - don’t tell anyone because this is a secret offer for a few select people.”
Sound familiar? If you or a senior you know has heard anything that resembles the sales pitch above, beware. It’s full of red flags. First, no one can offer you a guarantee as all investing involves some level of risk. Usually, the higher the returns, the higher the risk. Secondly, the pressure to hand over your money on the spot is a tactic scam artists use to exploit your fear of missing out on a valuable opportunity. You should always take time and seek third-party advice before entering into an investment. Finally, the invitation to keep the opportunity secret from others is how scam artists ensure your friends and family don’t learn of the investment and ask you hard questions that in the end would probably expose the investment for what it is – a scam.
How seniors can take action
- Don’t jump into any investment opportunity without looking into it further. Consult a registered financial adviser or obtain independent legal advice before making a decision.
- Have a conversation about financial matters with your family or someone you can trust. Talk about the red flags of investment fraud and how to be prepared if approached with a scam.
- Learn to recognize and avoid investment scams. The ASC has many resources to help you prevent financial abuse of seniors.
- Contact the ASC’s Public Inquiries Office at 1-877-355-4488 or inquiries@asc.ca if you believe you know of a potential investment fraud. Your call may help prevent other seniors from becoming a victim of a scam.
If you’d like to know more about the ASC’s resources and outreach for seniors, email checkfirst@asc.ca