According to the Federal Trade Commission and estimated 25 million people are affected by fraudulent schemes Of those, people between the ages of 45-54 are the most likely victims and those 55+ are the second largest.

Too Smart for Gold Investment Scams?

It is easy to think that you or I won’t fall for gold investment scams or any other bogus scheme for that matter, but former scam artist, Jim, reveals qualities about the most desirable victims in his interview with AARP.

“You might be thinking, Oh, those get-rich-quick scams are obvious, and I would never fall for one. When I hear someone say that only stupid people fall for fraud, I feel like asking for that person’s phone number. But here’s the thing: I didn’t want to talk to stupid people, because stupid people don’t have $50,000 lying around to give me. You would be amazed at how many doctors, lawyers, engineers and college professors I ripped off. The bottom line is, fraud is a crime that can happen to anyone, given the right con man and a victim with the right set of circumstances.”

 

 

Who is the Ideal Victim?

Jim goes on to say that “Fraud victims are people with emotional needs, just like the rest of us. But they can’t separate out those needs when they make financial decisions. That’s what makes them vulnerable.” In other words, the fraudster seeks out the person that is ruled by emotion as opposed to logic, which stereo-typically might allude to the female population, however Jim asserts that men make the best victims, particularly for gold investment scams.

 

“Why men?” he asks, “Men are more emotional than women. Men are grandiose; they are full of ego. And that’s all driven by emotion; it’s driven by insecurity; it’s driven by a feeling of inferiority.

Tips to Avoid Being a Victim of a Gold Investment Scam

• Ask questions.

  The person that is asking the questions is in control of the conversation. You’re more likely to uncover inconsistencies if you’re the one seeking information. Conversely, if you’re answering all of the questions, you’re more likely to be talked into a sale.

• Hold your gold.

  Many gold investment scams offer to store the gold for you – gold that they don’t have in storage facilities they don’t own. Rather, look for a company that will help you establish a Gold IRA so that you can store the gold yourself.

• Look for a reputable company.

  Are you getting a cold call from a pushy salesperson? Red alert. Instead, look for a company with a trusted track record. Go to a friend, trusted colleague, or credible family member. Or if you’re pioneering the search, look for testimonials that bolster or negate a company’s reputation.

 

Be Prepared and Do Your Homework

You’ve worked hard for your money. Don’t wait for a scammer to call and convince you of grand promises. Instead, begin searching out companies that your find reputable. Whether it’s real estate, stocks, or precious metals, you can never be too cautious when looking for investment opportunities. We encourage all of our potential clients to take a look at our offerings, ask many questions, and take their time deciding what is the right investment for them.

If you think you’ve been contacted by a scammer but aren’t sure, contact Landmark Capital. We have experienced agents on hand that can advise you on what to do if you’re ever in that unfortunate situation.