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In the News : SAIF
Publication: The Union (Grass Valley, CA)
By: John Dickey
Date: October 24, 2002
State Funds Seniors' Anti-Fraud Program
Part of Cheryl Morris' inspiration for signing up for training to protect seniors came from a friend's father.
The father, whom Morris had always considered mentally sharp, was defrauded in a scam. The Southern California senior lost as much as $100,000 in a Canadian lottery scheme that bilks people out of money with the promise of riches.
Morris, a Nevada City resident, thought, "If it could happen to him, it could happen to anyone."
The goal of the training Morris and others received Wednesday from the state's Seniors Against Investment Fraud program is to prevent the same thing from happening to anyone else.
The state has anted up $1.2 million for a training program through the Department of Corporations. The training will help educate people age 50 and over on how to avoid getting ripped off by telemarketing scams, insurance seminars by unlicensed agents, and questionable investment schemes.
"It's really a 'train the trainer' approach," said Robyn Goodman, the SAIF program manager.
Over the next 18 months, Goodman hopes to get 5,000 volunteers across the state to work as trainers. They will spread the word on avoiding con artists to the state's 8.5 million consumers over age 50.
That effort started locally on Wednesday, when 11 people gathered at the Quail Ridge Senior Living Facility in Grass Valley for training.
They will become volunteer ambassadors at local clubs and organizations, talking about how to avoid scams. It was the first training session held in Nevada County since the state began training people in May. Another training session is expected here in January, but no date has been set.
Grass Valley was prominent on Goodman's list of places to visit because she gets lots of calls from area seniors targeted by scams - including some who have lost money.
Con artists tend to follow the senior population, notes Goodman, and Grass Valley is one place where there are plenty of seniors - and scams, often involving contractor fraud, financial planning seminars and lotteries.
Tips to avoid fraud:
- Don't be a "courtesy victim." View a stranger who calls on the phone or appears at your door with suspicion. It is not rude to say no.
- Investigate strangers who tout "strange" deals. Don't trust strangers or get pressured into making quick decisions.
- Maintain control of your money. Constant vigilance is part of being a successful investor.
- Never judge a person's integrity by how he or she "sounds."
- Watch out for salespeople who prey on your fears.
- Older women with little investment experience should exercise particular caution. They are the con artist's ideal victim.
- Monitor your investments and ask tough questions.
- Look for trouble if retrieving your principal or cashing out profits is difficult.
- Don't let embarrassment or fear keep you from reporting investment fraud or abuse.
- If you are the victim of a bad investment, be very suspicious of promises to make good on lost funds through a new investment.
Source: California Department of Corporations
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