Protecting Vermont Seniors from Investment Scams
In 2024, Vermont seniors lost $496,333 to investment scams. While this may seem smaller than other scam types, investment fraud often targets retirement savings and can be financially devastating. This guide will help you recognize and avoid investment fraud.
Why Vermont Retirees Are Targeted
Vermont ranks among the top states for retirement security, meaning our seniors often have substantial savings. This makes us a target:
- High savings rates: Vermont seniors tend to be careful savers, accumulating significant retirement funds
- Trust in financial institutions: Our tradition of local banks and credit unions creates trust – which scammers exploit
- Limited investment options locally: Rural areas may lack access to vetted financial advisors, making online “opportunities” seem attractive
Recent Investment Scams in Vermont
Crypto “Retirement Multiplier” (2024): A scam targeting Vermont seniors promised to “triple retirement savings” through cryptocurrency. Victims in Chittenden County lost over $200,000 combined.
Fake Local Investment Club (2023): Scammers posed as a “Vermont Seniors Investment Circle” recruiting via Facebook. They collected monthly “dues” before disappearing with funds.
Common Investment Scams Targeting Vermont Seniors
Ponzi and Pyramid Schemes
These scams use money from new investors to pay earlier investors, creating the illusion of legitimate returns. Eventually, the scheme collapses and most investors lose everything.
Cryptocurrency Fraud
Scammers promise huge returns on Bitcoin or other cryptocurrencies. They may create fake trading platforms or impersonate legitimate crypto exchanges.
Precious Metals Scams
Fraudsters convince seniors to move retirement funds into gold or silver, often charging excessive fees or selling overpriced or non-existent metals.
Affinity Fraud
Scammers infiltrate churches, community groups, or veterans organizations to build trust before promoting fraudulent investments to members.
Fake Financial Advisors
Unlicensed individuals pose as financial advisors or brokers, convincing seniors to hand over their savings.
Warning Signs of Investment Fraud
Be alert to these red flags:
- Guaranteed high returns with no risk – All investments carry some risk
- Pressure to invest immediately – “This opportunity will not last”
- Unregistered investments – Cannot be verified with regulators
- Unlicensed sellers – Not registered with FINRA or state regulators
- Secretive or complex strategies – You cannot understand how it works
- Difficulty receiving payments – Excuses when you try to cash out
- Unsolicited offers – Cold calls or emails about investment opportunities
How to Verify Investments in Vermont
Before investing any money, verify the investment and the person selling it:
Vermont Department of Financial Regulation
- Phone: (802) 828-3301
- Website: dfr.vermont.gov
- Verify if investments are registered in Vermont
- Check if sellers are licensed
FINRA BrokerCheck
- Website: brokercheck.finra.org
- Free tool to research brokers and advisors
- Shows licensing, employment history, and complaints
SEC EDGAR Database
- Website: sec.gov/edgar
- Verify if securities are registered with the SEC
Protect Your Retirement Savings
- Never move retirement funds based on a cold call
- Be wary of “IRA rollover” pitches from people you do not know
- Verify any advisor with Vermont DFR before trusting them
- Get a second opinion from a trusted family member or independent advisor
- Take your time – legitimate investments do not require immediate decisions
- If it sounds too good to be true, it probably is
Vermont Investment Fraud Resources
- Vermont DFR Securities Division: (802) 828-3301
- AARP Vermont Fraud Watch: (877) 908-3360
- Vermont Attorney General: (800) 649-2424
- SEC Investor Complaints: sec.gov/tcr
If You Suspect Investment Fraud
- Stop sending money immediately
- Document all communications – save emails, texts, and notes from calls
- Contact Vermont DFR: (802) 828-3301
- Report to SEC: sec.gov/tcr
- File with FBI IC3: ic3.gov
- Consult an attorney about potential recovery options
Free Training Available
Take our free online course to learn more about protecting yourself from investment scams:
→ Start Investment Scam Awareness Training (Module 4)