The Securities and Exchange Commission recently charged operators of two Long Island, N.Y., financial-services firms with scamming investors, many of them seniors, out of more than $10 million. The brokers used high-pressure tactics and false information to persuade victims to buy thinly traded securities in dubious and shady ventures.
Boiler rooms—call centers where sales reps hawk investments—gained notoriety in the 1990s, but they’re just as prevalent today, says Lori Schock, director of the SEC’s Office of Investor Education and Advocacy. Although they still rely heavily on cold calling, crooks have added social media and e-mail to their arsenal of marketing tactics.
The eight-year-long bull market has only made it easier to scam people, Schock says. When coupled with low interest rates, promises of high-earning opportunities can sound too good to pass up, especially for retirees.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If someone pressures you to make an immediate decision, it’s likely a scam. A coId call from someone you don’t know is also a red flag, Schock says. Investors should ask themselves, “If it’s such a great investment, why are they calling me?” Truly great investments, she says, sell themselves.
-
QUIZ: What Type Of Retirement Saver Are You?Quiz What is your retirement savings style? Find out with this quick quiz.
-
Meet the World's Unluckiest — and Entitled — Porch PirateThis teen swiped a booby-trapped package that showered him with glitter, and then he hurt his wrist while fleeing. This is why no lawyer will represent him.
-
Smart Business: How Community Engagement Can Help Fuel GrowthAs a financial professional, you can strengthen your brand while making a difference in your community. See how these pros turned community spirit into growth.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for Fall Rate Cuts by the FedThe probability the Fed cuts interest rates by 25 basis points in October is now greater than 90%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
