Sadly, many elders are not safe from financial fraud while in their own homes. Often unsuspecting elderly persons are reached on the phone by dishonest brokers attempting to sell them bad investments and at times even scams. This type of scam has been found not only all over the United States but here in California as well.
Some ways that elders can combat the tactics of cold callers is by knowing what an honest caller sounds like: they are not pushy, happy to send information in writing, and are up front with who they are and what they are calling about. On the other hand, dishonest callers are pushy, ask for personal information and try to sell small, unknown companies that are high risk. Dishonest callers will try to keep an elderly person on the phone by giving them no time to think about the potential investment, a “once in a lifetime opportunity” and the promise of spectacular profits. This can sound very appealing to a listener and they can fall into the trap of making a poor investment. Additionally all persons, particularly the elderly, must be aware of the 3 call technique whereby the broker calls on three separate occasions-slowly winning over the victim’s trust prior to closing in on the deal.
The SEC in its investigation found that often dishonest callers are found in boiler rooms where the callers receive a standard script from which they cannot deviate. As a result callers are unable to given any additional information-and callers often resort to lies about the company, giving unjustified price predictions.
However, the situation is not hopeless for potential elderly victims of this type of fraud. One thing that you can do to avoid becoming a victim is to not give out any personal information over the phone and ask for something in writing. Additionally you can request to be added to the company’s do not call list. If calls persist victims can complain to the firm’s compliance officer, SEC and the state securities regulator.
If you live in California and want to talk to a lawyer about these or other issues related to elder financial abuse or deferred annuities, contact The Evans Law Firm by email at email@example.com or call at 888-503-8267.