Protecting older investors’ nest eggs from fraudsters can be a challenge, considering the number of scams they cook up to part people from their hard-earned money.
To answer that challenge, the Alliance for Investor Education (AIE) has outlined 10 of the best web-based resources for older investors and their family members about how to spot and protect themselves from investment fraud. The AIE is a nonprofit consortium of 19 trade groups and governmental and quasi-governmental U.S. organizations involved in investor education.
So why do older investors need to know about spotting and avoiding investment fraud?
“With the Baby Boomer generation just starting to retire, having saved and invested for years, scammers are looking for ways to take advantage of those nest eggs,” said AIE President Sue Duncan, who also serves as vice president of the ICI Education Foundation at the Investment Company Institute, in a statement.
The alliance wants to make sure older Americans can spot red flags when investing, Duncan noted. “Family members also need to be aware that their parents and older relatives may be at higher risk of being taken advantage of by fraudsters and should know how to protect their loved ones.”
The AIE website features a section, “Older Americans and Investment Fraud,” that lists the following top 10 resources for protecting retirees against scams:
1. Caring for Loved Ones – Securities and Exchange Commission
2. My Retirement Paycheck – National Endowment for Financial Education
3. Fighting Fraud 101: Smart Tips for Older Investors – Financial Industry Regulatory Authority/FINRA Foundation
4. Elder Investment Fraud and Financial Exploitation Prevention Program – Investor Protection Trust
5. Family and Finances: Start the Dialogue – American Association of Individual Investors
6. Important Questions to Ask Aging Parents – 360 Degrees of Financial Literacy/American Institute of Certified Public Accountants.
7. Senior Investor Resource Center – North American Securities Administrators Association
8. Consumer Guide to Financial Self-Defense – CFP Board
9. 10 Ways to Avoid Investment Fraud – CFA Institute
10. Watch Out For These Warning Signs of Fraud – Commodities Futures Trading Commission
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