Millennials have reported losing money to financial scams more than older consumers, according to the Tennessee Department of Commerce & Insurance’s Securities Division.
The TDCI shared that information that resulted from an annual report from the Federal Trade Commission.
It revealed the fraud loss trend of consumers in their 20s who reported losing money to fraud more often than people over the age of 70.
Of consumers ages 20 to 29 who reported fraud, 40 percent said they lost money, which compared to just 18 percent of those 70 and older who reported fraud.
According to the report, though, when older consumers reported losing money, the median amount they lost was greater than younger consumers.
The TDCI stated, “The median reported loss for people age 80 and older was $1,092 compared to $400 for those aged 20-29.”
In the nation, Tennessee ranked tenth in 2017 for reports of fraud. The total reported consumer losses were at $13.7 million.
“No matter your age, steps can and should be taken to safeguard your hard-earned money from con artists,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “Perform thorough research and take your time before committing your funds to an investment. Becoming an informed and skeptical investor is the best tool to prevent financial fraud.”
The TDCI released the following securities fraud prevention tips:
- Investment scammers can target investors by using social media to establish trust and credibility more quickly than face-to-face networking. The scam can spread rapidly through a social network as the con artist gains access to the friends and colleagues of the initial target.
- Search the names of all persons and companies connected to the investment being offered. The Internet offers anonymity and scam artists take advantage of this.
- Know how much risk you are willing to take with your investment; understand how much risk you should be taking given your age, family circumstances and other factors.
- Take your time; don’t allow anyone to rush your decision-making process.
- Never accept a verbal contract and never sign anything before reading it carefully and understanding it. If the language in a contract confuses you or feels wrong, walk away.
- Many online investment scams promise unreasonably high short-term profits. Guarantees of returns around 2 percent a day, 14 percent a week or 40 percent a month are too good to be true. Remember that risk and reward go hand-in-hand.
- Check the licensing/registration of the seller and product offered by contacting the Tennessee Securities Division [tn.gov].
- Check to see if any enforcement action [tn.gov] has been taken against the person offering the investment opportunity.
- Don't feel pressured to" act now." Take time to check out the investment yourself, and remember the old adage: "If it sounds too good to be true, it probably is."
TDCI officials warned consumers to always ask questions and make sure you understand risks before making any decisions with money.
