Today many seniors on fixed incomes are having a hard time economically with interest rates under 5 percent. Gerber said that seniors who are new to the Internet may not be sufficiently skeptical of anonymous messages posted on Internet bulletin boards devoted to prospective investors. For a couple hundred dollars you can buy thousands upon thousands of e-mail addresses. In fact, in the case of many promotions, the only people getting rich are company insiders, brokers and stock promoters who control the bulk of the shares.
American investors lose billions of dollars a year because of stock fraud.
Chairman Lam offered seniors these simple tips to protect themselves. Never buy anything over the phone from a stranger. Always ask for something in writing - a prospectus, an annual report. Before dealing with a financial professional, meet them in person.