Baby boomer and older Americans beware con artists are targeting you. There is a wave of investment scams targeting baby boomers and older Americans and the grandma phone scam. The con artists are targeting seniors because seniors are the segment of the population that has managed to save and accrue the most investments. Baby boomers and older Americans are very family focused, that is why the grandmas scam works. Baby boomers make up 25 percent of the U.S. current population that amounts to approximately 77 million people. This population gives con artist a vast amount of people to cheat.
State securities regulators are reporting a surge of investment fraud against investors ages 50 and above. Since the financial economy crisis, the baby boomers and older Americans are living on smaller incomes than they had anticipated. Therefore, they are trying to rebuild their nest eggs by looking for high yield products and investment opportunities to make up the missing in the nest egg. Most of the baby boomers and older Americans understand that quick gains do not exist without risk, and the desire for fast returns has promptly turned them into the con artist’s ideal score. The baby boomers, retires and those nearest to retirement age suffer the most devastated losses, and are the ones more interested in quick return investments.
Baby boomers are increasingly becoming the targets of investment fraud and state securities regulators predict the number of enforcement actions involving investors age 50 or older will increase this year and possibly next year. Many of the fraud victims are looking to recover steep losses suffered due to the financial crisis and this trend is expected to continue to grow. Many baby boomers are approaching retirement, which makes them particularly susceptible to fraud claims that promise high return in a short amount of time.
Baby boomers and older Americans that want to invest should be particularly cautious and verify all information a broker, adviser, or other financial professional provides about and investment opportunity. In addition, ensure that any company that is dealt with has conducted a thorough background check on all the salespeople, brokers, or advisers. The recent fraud trends are investments for the baby boomers and older Americans, so it is important for older investors to carefully research and evaluate any potential investment opportunity before investing.
The investment scams are a prevalent scam, but there is another scam on older Americans called the grandma scam. Older Americans need to be aware of this scam that is making its way around state to state. There is a phone call with the caller’s telephone number is blocked, or appears as unknown. The caller pretends to be a relative who has been in a car accident and has broken their nose so their voice is different. The caller asks for grandma or grandpa to wire them and amount of money to cover medical and/or legal fees. What grandparent is going to turn down their grandchild?
One thing to remember is this call comes in around noon. This time of day makes is easy for the older American to run to the bank and then to Western Union. In addition, noon is the time of day when it is hard to get a hold of relatives that work; to find out if it is a legitimate call. Baby boomers should have the work numbers of relatives to protect themselves from this scam. Should any baby boomers or older Americans receive this type of call just hang up and check on your grandchildren. Ensure they are not the ones calling, and ensure you will not be scammed.