Retired Brains
Fraud and Scams

What to watch for so you don’t get scammed and what to do if you think you have been scammed.

On a state by state basis you can call the North American Securities Administrators Association 202-737-0900 or check any of these resources;

Financial Industry Regulatory Authority 
   
     
Securities and Exchange Commission 
   
     
AARP 
   
     
North American Securities Administrators Association
 
How You Can Protect Yourself
We advise all investors to do their homework before investing. If you purchase a security solely because an analyst said the company was one of his or her “top picks,” you may be doing yourself a disservice. Especially if the company is one you’ve never heard of, take time to investigate.
 
 
Protect Your Finances from Fraud, Scams, & Theft
The following are things you should immediately approach with caution:
        •    Unsolicited Financial Promises or Loans
        •    Unsolicited Emails & Mail via the U.S. Postal Service
Known as “Phishing,” scammers prey on victims through email and/or the U.S. Postal Service. They represent themselves under countless seemingly  “reliable” entity guises to trick you into forfeiting your money.  For example, some represent themselves as government’s officials or other countries’ officials to either gain access to your bank account or swindle you out of hundreds and sometimes thousands of dollars. More recently some scammers have been representing themselves as the being with the IRS.
    Some common scams of this type:
        •    IRS scams
        •    Nigerian Letter Scam
        •    Phone Call Solicitation.
Telemarketing scams are very common; and take place when scammers call your home offering you deals that seem too good to be true. Here are some "pitches" the FBI has identified that can help you identify telemarketing scams:
        •    "You must act 'now' or the offer won't be good."
        •    "You've won a 'free' gift, vacation, or prize." But you have to pay for "postage and handling" or other charges.
        •    "You must send money, give a credit card or bank account number, or have a check picked up by courier."
        •    "You don't need any written information about their company or their references."
        •    "You can't afford to miss this 'high-profit, no-risk' offer."
    Representing themselves as your bank or another common and reliable entity, scammers will ask you to give them your account information, fill in missing information, or confirm information.  The sender of such emails generally tends to be from the “System Administrator”  Common Scams of this type involve people representing themselves as:
        •    Your Bank; banks who have had serious issues with this include Citibank, Bank of America, and Wells Fargo.
        •    Note: Your bank will never ask you for your password, pin number, or any other personal information through your email.  The only time that your bank will ask you for personal information is in person at the bank, on a phone call that you’ve initiated with your bank, or are on your banks official website.
 
    Scammers also prey on online shoppers through fake or fraudulent websites.  Be very cautious when purchasing products or services from a website you aren’t familiar with.  Also be cautious of purchasing products from online auctions sites, such as EBay, where scammers may send you a fake product or no product at all.
    Common Scams That Affect Senior Citizens:
        •    Health Care and Insurance Fraud & Scams
        •    Counterfeit Prescription Scams
        •    Funeral and Cemetery Fraud
        •    Fraudulent "Anti-Aging" Products
        •    Telemarketing Fraud
        •    Internet Fraud
        •    Investment Schemes
        •    Reverse Mortgage Scams
     
Protect Yourself from Debt Consolidation and Reverse Mortgage scams:
        •    Never give anyone you don’t know your personal information, even if they represent themselves as your bank, cable provider, gym, the government, etc.
        •    If it seems too good to be true, it probably is.
        •    Absolutely nothing is free. Be wary of those that claim it is.,.
        •    Never give money to anyone you don’t know, even if it seems like a great opportunity or someone who claims they really needs the money.
        •    Be wary of any unsolicited investment, insurance policy, etc. promises or opportunities.
        •    Do your research; always gather background information on any business or institution prior to giving them money..
        •    If you find that you are having second thoughts about giving money to someone or a business, get a friend or family member’s second opinion or consult a professional..
        •    Never make uninformed or quick decisions, even if the deal is only for a limited time; always know what you’re getting yourself into.
 
This information was provided by Allison Dean who writes regularly on this subject for.

Some good websites which provide helpful information are on fraud and scams are::

LifeLock Identity Theft Prevention - Save 10%
 

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