A Real Life Look at Investment Fraud: The Lure of Money
Many eyes are on your retirement nest egg. Boomers approaching retirement look out for how their retirement investments are growing. Those retired already have a watchful eye on how their retirement savings are lasting. The other “eyes” on your money are the opportunists. Through frauds and scams they try to lure you into the wrong investments.
Sounding sincere and knowledgeable, making promises of high returns, building trust are some of the often highly sophisticated techniques scams artists use to take your retirement money. Listen to people who thought they were making sound investment decisions, but put their trust in the wrong person and promise and ended up in a disastrous investment. Here are segments from AARP’s video, The Lure of Money.
Ponzi
Scheme Built on Promissory Notes (3:27)
Dorothy’s tax preparer talked her and other clients into investing in promissory notes with a “guaranteed” 10% interest. Being a tax preparer made it easy for him to find out how much money his victims had to invest. The troubles started when investors tried to get their money out. They couldn’t because he never had actually invested their money. Learn from Dorothy how this Ponzi scheme ended.
Viaticals
Served for Lunch (3:22)
Luis and Manuela were living off a small pension, Social Security, and some savings. Finances were tight so they wanted to make better investments. They tell AARP about how they lost $75,000 after attending a free investment seminar and getting talked into investing in viatical settlements.
Pressed
into Variable Annuities (3:24)
Edward and Maria were preyed upon by an elaborate investment scam involving the sale of variable annuities. Hear how they were pressured into investing 80% of their money by false claims of senior discounts and a double rate of return. Now they can’t get their money out.
Affinity
Fraud (3:56)
Two teachers tell how they trusted Ms. Ponsetta because she seemed like such a positive image of a successful African American woman. Once she gained their trust and their money to invest, she took advantage of that trust. When they found out their money was gone they were stunned, devastated and hurt.
Before
You Invest (2:00)
We can avoid experiencing some of these tragic stories by following some simple steps. Watch this segment from The Lure of Money video to learn how to be a wiser and safer investor.
Your Copy
You can also order a free DVD of The Lure of Money online or call 1-888-OUR-AARP (1-888-687-2277) and ask for stock number C2342 (C2344 for Spanish). Share a copy with a friend. Gather your family or co-workers to watch. Make arrangements to show The Lure of Money to your local volunteer group or service club.
Your Story
Tell your story about how your retirement security is at risk because of investment fraud. Add your voice to the tens of thousands of others who have joined the Divided We Fail mission to ensure health and financial security for all. It’s time to speak up and demand action from our nation’s leaders. Join with other AARP members to make a difference. Share your thoughts and do your part in making America better – for you, your children, and your grandchildren.
AARP Resources
Investment
Fraud
Learn more about how to listen for the fraudulent pitches and
watch out for the techniques that scammers use to make an investment
sound really tempting.
The AARP
Foundation and the Investor Protection Trust (IPT) have teamed
up to create The Campaign for Wise and Safe Investing.TM
This national educational and awareness campaign strives to
protect Americans against investment fraud which can erode retirement
assets.
Production of The Lure of Money was funded by a grant to the AARP Foundation from the Investor Protection Trust.
