Seniors are often the targets of frauds and scams. One scam that cons often use to prey upon seniors is the Investment Scam. Seniors tend to own their own homes, be good at saving their money and have excellent credit. Unfortunately, this makes them targets for scammers.
Investment scams promise a high return rate on money with little risk. The cons often state false statistics and guarantee their investments. One type of investment scheme is the Ponzi scheme. Bernie Madoff made these schemes a household name. His scheme went on for years and in the end he duped thousands of customers out of their hard earned money. It’s estimated that he lost $50 billion dollars of his investor’s money. These schemes occur when new investor funds are used to pay dividends to initial investors
So what can seniors do to avoid being scammed?