Five warning signs to watch to prevent senior fraud

Local fraud cases have captured big headlines in recent months.

In two cases, hundreds of thousands of dollars are alleged to have been taken from seniors.

On Thursday, the Missouri Secretary of State Jason Kander visited Cape Girardeau's senior center to remind our aging population to take extra precaution when "investors" come knocking.

Here are five warning signs to be alert to, according to Kander and reported by Erin Ragan in Friday's newspaper:

* Online brokerage management: These scams include the offer to set up an online trading account using a well-known company and management of the account. Seniors should be wary of a situation where a broker or trader is sharing a user name and password with an investor.

* Unlicensed traders/brokers: People who deal in investments and the investment product itself should be registered with the secretary of state's office. If they are not, be suspicious.

* Ponzi schemes: These are setups where high returns on investments can be earned, but only when new investors' money is used to pay returns to the existing ones.

* Fake real estate investments: Watch out for offers of investments on property, especially if the property is in a location the investor will likely never visit or if it involves renovations of properties.

* Bad fads: Watch out for investment fads that are pitched as a way to make money off new laws or government regulations.

Fraud, especially against seniors who have worked all their lives and tend to be more vulnerable, is despicable. Please be careful with your money.