Five Social Media Tips for Older Investors

by Wall Street Fraud on May 9, 2012

Investment fraud lawsuitThe SEC’s Office of Investor Education and Advocacy recently issued an Investor Bulletin to provide older investors who use social media with a few tips to help them avoid investment fraud. Given that more seniors are flocking to social media and using it as a tool to research investments, we want to highlight five of the most important tips.

1. Look Out for Red Flags. Common signs that an investment opportunity may be fraudulent include offers that seem too good to be true, promises of “guaranteed” returns with little or no risk, and pressure to invest right now.

2. Be Wary of Unsolicited Offers. If you see a new post on your wall, a tweet mentioning you, a direct message, an e-mail, or any other unsolicited – meaning you didn’t ask for it and don’t know the sender – communication regarding a so-called investment opportunity, you should exercise extreme caution.

3. Watch on for Affinity Fraud. An investment pitch made through an online group of which you are a member, or on a chat room or bulletin board catering to an interest you have, may be an affinity fraud.

4. Check Your Privacy and Security Settings on Social Media Sites. Seniors should be mindful of the various features on these websites that can help protect privacy. Understand that unless you guard personal information, it may be available not only to your friends, but for anyone with access to the Internet – including fraudsters.

5. Ask Questions. Be skeptical. Never judge a person’s integrity, or the merits of an investment, without doing thorough research on both the person selling the investment and the investment itself.

While social media can provide many benefits, it also provides another avenue for fraudsters to target investors. Therefore, seniors should exercise caution when using social media as part of their investment process.

If you have been the victim of investment fraud, we may be able to help you recover your losses. Contact us today at 215-839-3953 for a free consultation.

At Wall Street Fraud, we are dedicated to offering assistance to those who have been hurt by improper corporate or investment practices.

If you have been the victim of stock brokerage fraud, securities fraud, mutual fund fraud, stockbroker fraud, annuities fraud, or any other type of investment fraud or negligence, please contact our securities fraud attorneys today for a free case evaluation. Our talented and aggressive legal and professional staff is eager to help you recover your losses.

 

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