Seniors can avoid investment scams

The economic climate is ripe for investment scams that can affect all people, but seniors are particularly susceptible.

The North American Securities Administrators Association reports that older investors are being targeted with increasingly complex investment scams involving unregistered securities, promissory notes, charitable gift annuities, viatical settlements and Ponzi schemes.

Opportunists who commit these scams know that seniors and others living on fixed incomes are being squeezed in the existing financial environment.

By educating themselves, older adults can avoid being taken advantage of. The Better Business Bureau, along with the NASAA, offer these tips:

Do not be a courtesy victim. Con artists will not hesitate to exploit your good manners.

Check out strangers touting deals too good to be true. Trusting strangers is a mistake anyone can make when it comes to their personal finances.

Always stay in charge of your money.

Do not judge a book by its cover. Successful con artists sound and look extremely professional and have the ability to make even the flimsiest investment deal sound as safe and sound as putting money in the bank.

Watch out for salespeople who prey on your fears. Con artists know that you worry about outliving your savings. An investment that is right for you will make sense because you understand it and feel comfortable with the risk involved.

Monitor your investments and ask questions. If you are stalled when you want to withdraw your principal or profits from an investment, consider that a red flag.

Do not let embarrassment or fear keep you from reporting investment fraud or abuse.