Protect Your Retirement: Investment Scams Targeting California Seniors
California seniors lost $350,458,561 to investment fraud in 2024 – the highest loss category in the state. Criminals target retirement savings with fake cryptocurrency platforms, fraudulent financial advisors, and too-good-to-be-true investment opportunities.
Common Investment Scams Targeting California Seniors
Cryptocurrency Fraud
Scammers promote fake crypto trading platforms promising guaranteed returns. They often start through social media or dating apps, building trust before introducing the “investment opportunity.”
Fake Financial Advisors
Criminals pose as licensed advisors, complete with professional websites and fake credentials. They convince seniors to transfer retirement accounts to accounts they control.
Ponzi and Pyramid Schemes
These scams pay early investors with money from new victims, creating the illusion of legitimate returns until the scheme collapses.
Precious Metals Scams
High-pressure sales tactics convince seniors to convert retirement savings into gold or silver that is overpriced, never delivered, or does not exist.
Warning Signs of Investment Fraud
- Guaranteed high returns with no risk – all investments carry risk
- Pressure to act immediately before an opportunity disappears
- Unregistered investments or unlicensed sellers
- Complex strategies that cannot be clearly explained
- Difficulty withdrawing your money
- Romance connections who suggest investments
Step-by-Step: How to Verify an Investment in California
Before investing any money, complete these verification steps:
Step 1: Check the California DFPI
The California Department of Financial Protection and Innovation regulates financial services:
- Phone: (866) 275-2677
- Website: dfpi.ca.gov – Verify a License
Step 2: Check FINRA BrokerCheck
Verify any broker or financial advisor is properly registered:
- Website: brokercheck.finra.org
- Phone: (800) 289-9999
Step 3: Check SEC EDGAR Database
Verify investment products are properly registered:
- Website: sec.gov/edgar
Protect Your Retirement Savings
- Never invest based on social media tips or advice from online acquaintances
- Be suspicious of anyone who found you rather than you finding them
- Take your time – legitimate investments do not disappear overnight
- Talk to family members before making major financial decisions
- Get a second opinion from a verified, licensed advisor
Report Investment Fraud in California
California DFPI:
- Phone: (866) 275-2677
- Website: dfpi.ca.gov – File a Complaint
California Attorney General:
- Phone: (800) 952-5225
- Website: oag.ca.gov
SEC Investor Complaints:
- Website: sec.gov/tcr
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