Scammers often target older adults for investment fraud because many have built up savings over time. Seniors may also be more vulnerable due to memory issues, social isolation or the desire for stable, guaranteed income in retirement. Here are some of the most common scams to watch for—and how to avoid them:

High-yield investments: 

These schemes promise big returns with little or no risk. Scammers may use technical jargon and claim access to inside information or exclusive deals to appear legitimate.

“Free lunch” seminars: 

Fraudsters lure targets with the promise of a free meal, then pressure them into buying risky financial products. The meal is just a hook to gain access to potential victims.

Unsuitable investments: 

These include hard-to-understand products like lifetime annuities or viatical settlements (investing in a dying person’s life insurance policy). They’re often sold through high-pressure seminars or one-on-one pitches.

Reverse mortgage scams: 

A reverse mortgage can be a legitimate way for homeowners 62 and older to access their home’s equity while still keeping ownership. But scammers often twist the terms to drain that equity and put seniors at financial risk. Watch out for unsolicited offers—especially if someone claims the loan is “free money.” If they can’t clearly explain how the loan works or make it sound overly complex, consider it a red flag. Be especially cautious if they insist they’re the only lender you should work with or demand fees upfront.

Cryptocurrency fraud: 

In 2023, Americans over 60 lost more than $716 million to cryptocurrency-related scams, according to the FBI. Scammers may start with small investments that appear to pay off, then convince victims to invest larger sums—only to disappear with the money. Cryptocurrency payments are rarely reversible. If you’ve sent crypto to a scammer, contact the company you used and report it as fraud.

Warning signs of an investment scam:

• Pressure to invest quickly
• Promises of guaranteed, high returns
• Confusing or complex investment details
• Unlicensed or unknown brokers
• Requests for personal financial information upfront

How to protect yourself

• Verify credentials of any broker or financial professional
• Research the investment and company thoroughly and resist high-pressure tactics
• Report suspicious activity to the Securities and Exchange Commission (SEC): SEC.gov/submit-tip-or-complaint