they will pressure the investor to “roll over” non-existent
“profits” into new and even more alluring investments,
thus further delaying the point at which the fraud will be
uncovered.
If you are not investing in a financial vehicle with a fixed
term, such as a bond, you should be able to receive your
funds or profits within a reasonable amount of time.
Don’t let embarrassment or fear keep you from
reporting investment fraud or abuse.
Older Americans who fail to report that they have been
victimized in financial schemes often hesitate to report
because of embarrassment or the fear that they will be
judged incapable of handling their own affairs.
Some senior citizens have indicated that they fear their
victimization will be viewed as grounds for forced
institutionalization in a nursing home or other facility.
Con artists know about such sensitivities and count on
these fears preventing or delaying the point at which
authorities are notified of a scam. While it is true that
most money lost to investment fraud is rarely recovered
beyond pennies on the dollar, there are also many cases in
which older Americans who recognize early on that they
have been misled about an investment are then able to
recover some or all of their funds by being a “squeaky
wheel.”
A good resource for older Americans who fear they have
been victimized is their state securities agency. Alabama
residents should call 800-222-1253, or write: Alabama
Securities Commission, 770 Washington Ave., Suite
570, Montgomery, AL 36130-4700.
Beware of “reload” scams.
Younger Americans who are ripped off by swindlers are
fortunate to the extent that they have the opportunity to
pick themselves up and restore some or all of their losses
through new earnings. Most older Americans, however,
are dealing with a finite amount of money that is unlikely
to be replenished in the event of fraud and abuse. The
result is a panic that is well known to con artists, who
have developed schemes to take a “second bite” out of
senior citizens who already have been victimized.
Faced with a loss of funds, some senior citizens will go
along with another scheme (allowing themselves to,
in effect, be reloaded) in which the con artist promises
to make good on the original funds that were lost and
possibly even generate new returns beyond those originally
promised.
Though the desire to make up lost financial ground is
16 Senior Resource Directory 2020-2021
understandable, all too often the result is that unwary
senior citizens lose whatever savings they have left after
the initial scam and possibly more in the second scam.
The preceding article was adapted from the web site: http://
www.asc.alabama.gov.
Identity Theft
Identity theft occurs when your personal identifying
information is stolen and used by someone.
Identity thieves can use the stolen information to open
fraudulent credit card accounts in your name, apply for
utilities and cell phones in your name, borrow money in
your name, and make major purchases such as houses and
cars in your name.
Identity thieves may even use your identity when arrested
or interrogated. Identity theft wreaks havoc on your
life because it damages your good name and credit and
exposes you to potential financial loss.
Below are some things you can do to reduce the likelihood
of your identity being stolen. Unfortunately, even if you
are constantly vigilant, you could still become a victim of
identity theft.
Secure your mail.
Pick up your mail and newspapers daily. Ask the Postal
Service to stop your mail if you are going to be away.
Shred correspondence such as credit card offers or anything
else with identifying information before discarding.
If possible, place your outgoing mail in a U.S. Postal
Service receptacle, rather than your own mailbox. The
flag on your mailbox alerts identity thieves that you have
important documents such as checks and credit card
numbers in your mailbox.
If you want to cut down on the amount of unsolicited
offers you receive, call 1-888-567-8688 to be removed
from the database that generates credit card pre-approved
offers.
Keep your financial information private.
Carry only the credit cards you need to use at the time.
Leave others in a secure place. In public, be aware of people
around you who may be trying to read the numbers on
your credit cards or checks.
Limit information printed on your checks, and make sure
your checks are stored in a secure place.
Pick up new checks at the bank, rather than your home
mail box.
/www.asc.alabama.gov
/www.asc.alabama.gov
