As more than an estimated 10,000 baby boomers reach retirement age every day, the number of con artists who prey on retirees and the elderly continues to grow as well. Though there are any number of different kinds of scams out there, but con artist typically employ the same tools over and over. By educating yourself about these tools, you can more easily identify a scam and avoid it.
Scam Sign 1: You have to act right now.
Many of our best decisions are made when we carefully evaluate the situation and make an informed choice. Con artists know this, and they set out to try to get you to avoid this process by convincing you that you must act immediately. Whenever an offer comes that says there is a very limited time or limited supply available, be very careful about these as this false time pressure is a classic sign of a con.
Scam Sign 2: It’s too good to be true.
Many baby boomers were significantly affected by the recent economic downturn and con artist will play to these concerns. They may offer incredibly high returns with limited or no risk, or other deals that seem too good to be true. If you receive such an offer you should just walk away, as these deals are usually fraudulent.
Scam Sign 3: Don’t ask questions.
Along with the false time pressure, con artist will typically resist any attempt you make to try to find out more information. A good advisor will be completely upfront with you at all steps and offer you as much information as you like. A con artist wants your money quickly and will either avoid questions or not allow you to ask them.