Division of Consumer Affairs Acting Director Steve Lee said, “Through our Fighting Fraud and other initiatives, we are empowering senior citizens and all New Jerseyans to recognize scams and prevent themselves from being victimized. To anyone who has become a victim of fraud, we say don’t be embarrassed, and don’t let anything hold you back from getting the help you need and deserve. Contact the Division of Consumer Affairs or the Bureau of Securities and let us pursue restitution and justice.”
Bureau of Securities Chief Laura H. Posner said, “Financial fraud is one of the fastest-growing forms of elder abuse. One in five Americans 65 or older are victims of financial fraud, costing Americans more than $2.6 billion per year. The single best way to avoid becoming a victim of financial fraud is to check before you invest. Contact the Bureau of Securities to learn whether the investment professional, and the product he or she is selling, are registered in New Jersey, and to learn about other concerns we may have flagged, before you send anyone money or make any investment decisions.
Bureau Chief Posner noted that the scams listed here are not limited to senior citizens or the elderly. Investment scammers see anyone who is 55 or older, whether working or retired, as a potential target. Within this age bracket they often target educated men, who are seen as having accumulated more wealth through hard work and saving. In other cases, scammers attempt to victimize older Americans, particularly if they exhibit signs of a decline in mental faculties.
Common Investment Frauds Targeting Senior Citizens:
Seniors are often targeted through the Internet, mail, phone, in-home visits and free “financial seminars” specifically tailored to large groups of seniors. While the sales pitch might change, the most common elder investment frauds tend to include the following:
Red Flags That Indicate Someone Has Been Victimized:
The following red flags can help you recognize whether you or a family member has become a victim of elder fraud. If you or a relative has been victimized, immediately contact the Bureau of Securities at 866-I-Invest or www.NJSecurities.gov.
Avoiding Investment Scams:
By following these five easy steps, seniors and their loved ones can avoid becoming victims of fraud.
Additional Information for Consumers:
The New Jersey Division of Consumer Affairs has launched “Fighting Fraud,” a series of consumer education seminars that will reach all 21 counties during 2015. As a springboard to discuss various types of fraud, the "Fighting Fraud" seminars include footage from a law enforcement surveillance camera that was hidden in the overseas "boiler room" of a multimillion-dollar lottery and telemarketing scam. For more information about the “Fighting Fraud” events, to find a “Fighting Fraud” presentation near you, or to request a “Fighting Fraud” seminar for your community, visit www.njconsumeraffairs.gov/Fraud/Pages/default.aspx or call the Division at 800-242-5846 (toll free within New Jersey) or 973-504-6200.
The Division of Consumer Affairs and Bureau of Securities have made the following additional information available, free of charge to the public:
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