The Tennessee Department of Commerce & Insurance's (TDCI) Securities Division is shining a light on a critical issue affecting senior investors in the state: the risk of financial exploitation due to social isolation and loneliness. As TDCI Commissioner Carter Lawrence pointed out, social isolation and diminishing cognitive capacity can be a dangerous mix, impairing senior investors' judgment and leaving them vulnerable to scams that could effortlessly obliterate their life savings. According to a statement obtained by TDCI, Lawrence urges "seniors and their caregivers to familiarize themselves with the common tricks and traps used by financial scammers."
In response to this issue, TDCI has launched a new initiative to educate consumers and help protect Tennessee's older population from financial predators. On their blog, which provides detailed protective strategies, TDCI outlines the hallmarks of fraudulent schemes—from "pump and dump" scams to the sophisticated web of Ponzi operations. Assistant Commissioner for Securities Elizabeth Bowling noted in the blog that "senior fraud is often underreported by victims due to embarrassment and lack of information about where to report fraud." Bowling encourages individuals to quickly yet responsibly report any suspicious activities or concerns they might have regarding their investments.
The risks of social isolation and loneliness do not operate in silence. They are loud in their absence, known to be a leading factor in financial abuse among seniors. Acknowledging this fact, TDCI pleads with the public to be vigilant and continuously check the credentials of the people offering investment opportunities. "Always check whether the person offering to sell you an investment is currently registered and/or licensed, even if you know them personally," states TDCI on their website.
TDCI also emphasizes the need to be wary of investments offering high returns with minimal risk, pressure to immediately make an investment and to keep an eye out for any red flags in a financial professional's background. For those in need of guidance or looking to file a complaint, TDCI has made themselves available through multiple channels. Investors can reach out online at tn.gov/securities, by email at [email protected], or via phone call at 800-863-9117.
