SEC Issues Investor Alert for Seniors Regarding Investment Fraud

The SEC Office of Investor Education and Advocacy issued an investor alert to help seniors identify signs of potential fraud in what appear to be legitimate investment opportunities. Specifically, the SEC listed five "red flags" that seniors should watch for when making investment decisions.

The SEC explained that promises of high returns with little or no risk are classic warning signs of investment fraud, and noted that investors should avoid putting money into "can't miss" investment opportunities or those that are offered by people who promise "guaranteed returns." Additionally, the SEC warned that investors should always check whether the person offering to sell them an investment is registered and licensed. If the person is registered, then investors also should check to see if the investment professional is in good standing with his or her regulators.

The SEC also highlighted resources that an investor should check before making an investment decision. These included (i) A Guide for Seniors: Protecting Yourself Against Investment Fraud; (ii) Social Media and Investing: Tips for Seniors; and (iii) "Free Lunch" Investment Seminars: Avoiding the Heartburn of a Hard Sell.

See: SEC Investor Alert.