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Top Investment Scams Seniors Should Know About

scam alertIt is unfortunate that seniors are constant targets for shady individuals who are looking to scam people out of their money, and often it can be difficult for seniors to differentiate between a good investment and a possible scam. In order to help seniors be aware of the top investments scams going on this year, the North American Securities Administrators Association has released their annual list of the top 10 investor traps to be aware of. While this list is relevant for anyone looking to invest, it is particularly important for seniors who are the frequent target of these investment scams. Below is a list of 5 of the top 10 investor traps that seniors should know about, and a small explanation about each one. Anyone wishing to see the full list can visit the North American Securities Administrators Association website.

Exchange-Traded Funds (ETFs) – Many people look at ETF’s like mutual funds, but they are actually way more complicated and have a higher potential for volatility. Seniors prefer stable investments, as they cannot afford to experience major losses.

Foreign Exchange Trading Schemes – Most seniors are not well versed in the intricacies of foreign exchange trading, and therefore these types of investments should be avoided. Seniors can risk being charged high commissions, or having their money managed by someone who has no clue about investing.

Gold and Precious Metals – Seniors can invest in gold via traditional investment channels, but they should avoid all scams regarding promises about gold bullion, and investment pools for precious metal commodities and gold mines.

Green Schemes – It is one thing to invest in a known publicly traded company that is involved in “green” technology, but otherwise seniors should avoid potential green schemes. Scammers will often try and capitalize on a popular green trend, to lure seniors into investment scams.

Oil & Gas Schemes – The fluctuations in the price at the gas pump has led to a variety of fraudulent promoters looking to sucker seniors into an investment scam. Oil and gas investments are typically very risky, and not recommend for a novice investor.

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About the Author
Asha was born in India, but moved to the states when she was 18 to attend college and study journalism. She has held various writing jobs over here career, and now concentrates her efforts on freelancing for a variety of online publications in different industries. Asha loves cooking traditional Indian food for her family, doing the weekend crosswords in the NY Times, and working in her garden. Asha tagged this post with: , Read 69 articles by
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