Ken Morris: The Grand Canyon goes public, so invest now…. or remember the need to watch for scams
I recently received a letter from the U. S. Census Bureau requiring me to fill out the American Community Survey. I initially thought it was a phishing scam, but after some lengthy online research, I concluded the letter was legit.
There were a number of odd questions in the survey, but the majority pertained to who was paying my housing costs and everyday expenses. The purpose, I surmised, was to determine if I were receiving any type of subsidies from Lansing or Uncle Sam.
There were no questions seeking sensitive information, such as my Social Security number or details of my investment accounts. I mention this in a financial column because I've frequently warned readers to be aware of phishing scams.
In this day and age, I feel it is appropriate to be skeptical and cautious of potentially fraudulent financial behavior. The onus has shifted; now the legitimate have to prove that they are genuine.
We generally think of financial fraud as a high-tech individual or entity swooping in and cleaning out our accounts. That does happen, but far too many frauds occur when the perpetrator puts on an act and pretends to be someone or something that they are not.
For example, some seniors have fallen for the cupid scam, in which a fraudulent person preys on their kindness and vulnerability. The scammer shows care and love, earns trust over time and eventually hits up the victim for a loan or outright cash. And suddenly the relationship is over.
Fueled by negative political ads, a lot of fear seems to be pouring into or minds. Many political ads suggest the sky will fall if their opponent wins the election.
I have always stressed the need to keep your emotions at bay, especially during election cycles. If you're a night owl like me, you've seen plenty of commercials promoting investing in gold. Sadly, one of these firms was not actually holding any gold and the "investors" ultimately lost their money.
I even read that some cashed in their entire retirement account with the intent to purchase gold for a new IRA.
Was this company preying on fear? I think so. Was it fraud? What do you think? Unfortunately, physical gold is not considered a security and the Securities Investor Protection Corporation (SIPC) does not cover fraud.
In the traditional investment world, however, the SIPC does protect investors up to specified limits. That protection doesn't cover investment losses, but it does protect investors against inappropriate or fraudulent behavior on the part of the account custodians.
Whether you're online, watching television or just going about your everyday activities, you must always be cautious. Yes, many scammers take particular advantage of older folks, but regardless of your age, there are people out there trying to separate you from your hard-earned money.
They come at you utilizing technology, they feign friendship, they gain your trust, and then they abuse it. And you likely will have little or no recourse for regaining what you lost. In this day and age, you must always keep your guard up, no matter your age, marital status or wealth.
Still, I feel we should all walk a fine line between being cautious and overly negative about everything. As bad as it sometimes appears, the vast majority of people are honest and legitimate.
Email your questions to .
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.
