Don't be a victim of scams and rip-off artists

Unscrupulous stockbrokers and financial planners who engage in abusive practices often seek out the elderly. But the reality is anyone at any age can be duped.

If you are contacted by phone, e-mail, snail mail or even in just your daily life, costly mistakes can be avoided by following these simple ten money self-defense tips:

1. Don't be a "courtesy victim". Con artists don't hesitate to take advantage of people with good manners. A stranger who calls either on the telephone or at your door should be regarded with the utmost caution. There are legal restrictions on "cold calls" and you are under no obligation to say "yes" to a stranger asking for your money. In these circumstances, it is not impolite to simply say that you are not interested.
   
    
2. Check out strangers touting "strange" deals. Trusting strangers is a mistake that all too many older Americans make when it comes to personal finances. Say "no" to any investment professional or con artist who presses you to make an immediate decision, giving you no opportunity to check out the salesperson, firm, and the investment opportunity itself. The California Department of Corporations can help you with information on firms and individuals in the securities and investments industries, including stockbrokers, investment advisers and financial planners.
   
    
3. Always stay in charge of your money. Beware of any financial professional who suggests putting your money into something you don't understand, or who promises to "take care of everything for you. Constant vigilance is a necessary part of being a successful investor.
   
    
4. Never judge a person's integrity by how he or she "sounds." Successful con artists sound extremely professional and combine professional-sounding sales pitches with extremely polite manners. Don't be fooled. Good manners and a slick sales pitch have nothing to do with real integrity and have no bearing on the soundness of an investment opportunity.
   
    
5. Watch out for salespeople who prey on your fears. Con artists take advantage of the fears of many older Citizens that they will outlive their savings or that all their financial resources will disappear as a result of a catastrophe. Fear and greed can cloud good judgment to the detriment of a sound financial decision. If the investment doesn't make sense, or if it seems to good to be true, it may be a scam.
   
    
6. Older women with little investment experience should exercise particular caution. A con artist's ideal victim is the "elderly widow." Elderly women on their own with little investment experience should always seek the advice of family members or a disinterested professional before deciding what to do with their savings.
   
    
7. Monitor your investments and ask tough questions. Many older people who trust unscrupulous investment professionals to make initial financial decisions compound the error by failing to keep an eye on the progress of the investment. Insist on regular written and oral reports. Look for signs of excessive or unauthorized trading of securities and report any inconsistencies to Securitys and Exchange Commission.
   
    
8. Look for trouble if retrieving your principal or cashing out profits is difficult. A stockbroker or other investment adviser, who fails to respond to a request for a refund of the initial principle or profits from an investment, may be con artist. Unscrupulous investment promoters pocket the funds of their victims and often go to great lengths to explain why investments or profits are not readily accessible. If the investment is not a fixed term, such as a bond, a request for a refund of principle or profits should be available to the investor within a reasonable amount of time.
   
    
9. Don't let embarrassment or fear keep you from reporting investment fraud or abuse. Con artists recognize the fears of many older investors and count on these fears to keep them in business. If there is a concern that you have been victim of investment fraud, report such fears immediately to the authorities.
   
    
10. Beware of "reload" scams. Older Citizens who have a finite amount of money, which is unlikely to be replenished in the event of fraud or abuse, will sometimes go along with another scheme, if faced with a loss of funds. These so-called "second bite" scams defraud investors who have already been victimized. Be very suspicious of promises to "make good" on original funds that were lost, with an even greater return than was originally promised.

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