smart spending

Phone scams against the elderly

Investment scams
Next
6 of 7
Back
Investment scams

You receive a phone invitation to a free lunch seminar. Or the invitation could be for a weekend getaway or even a cruise. It could arrive in the mail.

If what's being hyped is labeled as an investment opportunity, it's frequently "a bogus investment," says Breyault. These so-called opportunities are often Ponzi schemes.

"Scammers buy phone lists," Breyault says.

Scam signs:

  • Promises unbelievable returns but puts none of that in writing.
  • Pressures you to make a decision on the spot. "If it's a good investment today, it will be a good investment the next day," says Breyault.
  • Claims sponsorship or endorsement by organizations or agencies that don't endorse or sponsor investments.
  • May claim to be registered or licensed when they really are not.

Tip: Never make investment decisions immediately. And vet all professionals and potential investments, Breyault says. Do background checks.

And skip the freebies. Like your mama always told you: There's no such thing as a free lunch.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
FRUGAL NEWSLETTER

Discover new ways to cut costs and save more every day. Reduce your spending, not life’s pleasures. Delivered weekly.

advertisement
Partner Center
advertisement

Connect with us