Fraud targeting investors who are age 65 and older are growing increasingly sophisticated, bold, and prevalent as scammers leverage advancements in both financial and personal technology, according to a panel of regulators.
“They’re getting very smart with crypto, finding people on WhatsApp, Facebook, and other social media,” Suzanne McGovern, a senior adviser with the U.S. Securities and Exchange Commission, said on a virtual webinar hosted by the North American Securities Administrators Association last week.
McGovern, who does investor advocacy and education for the SEC, said new scam tactics include having older investors put money into a cryptocurrency account, have them watch it triple, and then send the earnings back to show real returns.
“Then the FOMO kicks in,” McGovern said. “Now, they [the scammers] call back and say ‘we’re at the bottom and crypto is going to pop, you can quadruple it this time,’ and they ask for an even bigger chunk of money…next thing you know the app has disappeared, the investor can’t get anyone on the line, and the money is gone.”
It’s crucial for financial advisers, firms, and trusted contacts such as friends and family to be aware and on the lookout for scams hitting either older investors, according to the panel, which also included members of the Financial Industry Regulatory Authority and National Adult Protective Services Association.
Older consumers reported…
