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Warnings to seniors about bank fraud
The Senate Special Committee on Aging has
joined with national officials and state law
enforcement personnel warning senior
citizens to be cautious with their
retirement money.
"In any economic downturn people will try to
maximize their savings and with today's
lower rates, some are tempted by risky
get-rich-quick schemes.
"It's in this type of environment that scam
artists seem to flourish -- at least for a
while -- before being prosecuted by the
law," the Committee said. "Unfortunately,
with this type of scam, senior citizens can
lose their entire life savings."
One of the latest investment frauds
circulating throughout the country is the
so-called "prime bank" scam. Regulators at
the Securities and Exchange Commission have
shut down over three dozen such schemes,
with losses totaling hundreds of millions of
dollars.
"There are no "prime bank'' investments, but
one of the common claims of the con-artists
is that banks and government officials want
to keep the trade of such monetary
instruments 'highly secret.' Those who make
such claims simply want to steal your
money," the Committee said.
While attempting to lure investors,
criminals will often claim that "prime bank"
financial instruments are issued by banks to
other banks, and are therefore safe and
profitable. Scam artists often use
sophisticated sounding terms, referring to
such things as "prime bank" guarantees,
notes, debentures, standby letters of
credit, or blocked funds in order to impress
their prospects.
At a national press conference in
Washington, DC, one investor from Utah
warned others that he had lost over $50,000
after a close friend told him he could make
25 percent per month return on his
investment in a "prime bank" program.
Seniors and others worried about potential
financial scams should call the U.S.
Securities and Exchange Commission at
1-800-SEC-0330
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