It's an unfortunate reality that older adults, who have had more time to accumulate wealth, are at an increased risk of being targeted by some fraudsters -- and of losing more money per fraud incident. However, the risk might not affect everyone equally. In research by the FINRA Investor Education Foundation, certain behaviors and characteristics were found to be associated with an increased risk of fraud victimization in older adults.
Some of these risk factors include: engagement in activities that increase fraud exposure, such as opening all of your mail (especially unsolicited marketing materials or sweepstakes announcements), participating in conversations with telemarketers and answering unknown calls or texts; a preference for higher financial risk; loneliness; and financial fragility.
Reduce your exposure.
Cut off contact before it starts by taking precautions like declining or blocking calls from unknown numbers, deleting messages from unknown senders, saying no to or hanging up on telemarketing offers, and throwing away junk mail. If you suspect a text message or email is spam, block and report the sender.
Ignore promises of big rewards.
There are no guarantees with investing. Look out for red flags like promises of risk-free investing, guaranteed returns and high profits. Be especially wary if you were solicited for an investment when you weren't even looking for one. Likewise, competitions and prize drawings, particularly if they require an upfront fee, are often fraudulent.
Check out sellers and products.
Be alert to signs of imposter investment scams and, before you make any investment, research the seller and the product to make sure they're legitimate and a good fit for you. You can look up financial professionals using FINRA BrokerCheck to confirm whether they're registered and/or licensed and view their employment history.
Stay connected.
If you're struggling with feelings of loneliness, try to bolster your existing relationships or seek new connections in person, rather than virtually. Unfortunately, random contact from strangers online or via text message is all too often the start of a scam. Reach out to family and friends, if possible, whether in person or from a distance, and look for opportunities to participate in community programs and interact with others.
Monitor your emotions.
Don't make investing decisions in a rush or when your emotions are strong. Take time to think things over -- or even better, talk over decisions with someone you trust.