Financial Health Beware of Fraud

Seniors are an attractive target demographic for criminals, since they frequently keep savings, have their own home, and receive a pension. Aside from that, FBI experts also note that these older generations tend to be polite with strangers and are usually less distrustful, which places them at a higher risk.

FRAUD AND IDENTITY THEFT: DIFFERENCES AND HOW TO PROTECT YOURSELF

Fraud is usually presented as an incredible and unmissable investment opportunity, offering high earnings without any risk whatsoever. This is your first clue that there is something fishy! Investments always entail a degree of risk, and the higher the earnings, the higher the risk.

Another characteristic of fraud is that you are pushed to decide quickly, without thinking it through. So, if it sounds too good to be true, it is probably not real. If someone approaches you with a proposal to make quick money, there are several steps you can take:

End the conversation

Simply tell the person, “I am not interested,” or, “I never make investment decisions without consulting with my advisor, so I will get back to you.”

Ask questions before giving out personal information

Are you licensed? Are you registered with FINRA (Financial Industry Regulatory Authority, an entity that regulates professionals in the field) and the U.S. Securities and Exchange Commission (SEC)? Regardless of the answer, it is important to check. You can refer to the website SaveAndInvest.org or FINRA’s BrokerCheck at www.finra.org/brokercheck.

Ask a third party

Even if the seller and the investment are registered, it is always important to consult decisions of this nature with a relative or a trusted financial advisor.

Avoid becoming a victim of identity fraud

It is one of the fastest-growing crimes and can be a real pain. To prevent it, experts recommend:

• Shredding all your financial documents before discarding them. Trash bins are a great source of information for these criminals.

• Do not use your Social Security number  as a form of identification, and do not keep your card in your wallet.

• Do not offer personal information over the phone or internet, unless it was you who initiated the contact. Do not hesitate to hang up if you feel there is something wrong.

• If there are people working in your house, keep your information in a safe place.

• Check your accounts often to check for any unexpected charges. Request an annual credit report to check your history. Many people don’t find out they have a problem until they see their credit report.

• If you notice a problem, immediately contact the institution involved, and report it to the police. This grievance is vital to resolve the situation with your creditors.