The Watchdog Report

By Comptroller General Richard Eckstrom

 

 

As the state’s chief financial officer I want to help protect our citizens from financial crimes.  While crimes like investment fraud threaten people of all ages and incomes, senior citizens are all too often singled out as the prime target for promoters of these schemes. 

 

Our senior citizens should be treated with extreme respect and fairness.  A scam artist intent on taking advantage of the elderly should be dealt with swiftly and harshly.  My goal is to provide accurate information and useful advice to help protect our citizens, especially the vulnerable elderly, from the growing problem of financial fraud.  

 

To the extent possible older citizens should maintain control of their own financial affairs either themselves or through a loving, trusted family member.  Some dishonest financial advisers offering to “take care of everything” often target older investors.  While such offers are attractive on the surface, it’s a favor that can cost all your hard earned money. 

 

Senior citizens have many financial concerns.  Will their savings last through their retirement years?  Will a downturn in the economy leave them penniless?  Con artists know all these fears and even more you may have never thought of.  However, your greatest fear should be the fear of falling for their slick sales pitch.

 

Unsolicited offers can be especially dangerous.  What may seem like a good deal can often turn into a financial catastrophe.  We all know to lock our doors and windows at night, but in the case of financial fraud the threat is rarely found at the front door.  Instead it comes through the mail, the television or radio, and most often, the telephone.  In general, it is best to ignore unsolicited offers whether they are made in person or over the phone.

 

When looking for investment opportunities never make a decision based solely on a salesman’s appearance or professional demeanor.  Financial fraudsters will spend considerable time and money to look good so potential victims won’t question their credentials.  Slick, full-color brochures and elaborate Internet sites can be nothing more than a spider’s web for luring unwary investors.

 

Never trust a stranger with your personal financial matters.  Check out all deals.  If you are being pressured to invest immediately, “before it’s too late,” chances are someone is trying to take your money.  Take the time necessary to learn more about the deal and to independently confirm the details of the investment.

 

Once you have invested money don’t just sit back and relax.  Get tough and keep watch.  Monitor your investments, and if you have questions ask them.  Be especially careful not to make decisions that might disrupt the monthly income you depend upon to meet your daily needs. 

 

The most important thing senior citizens can do is to be aware of the growing problem of financial fraud.  Realize that senior citizens, particularly women, are often specifically targeted for dishonest financial schemes.  Learn to be a watchdog, alert to these potential threats and ready to take action if needed.   Senior citizens have a special place in our society and as a state official I want to help provide the security and protection they deserve by providing better education on these matters.