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5 Tips to Steer Older Clients Away From Social Media Traps<br><br>

An increasing number older Americans are signing on to social media websites for investment education. That is great news for financial advisors who want to include older clients in well-conceived social media strategies.


But before your older clients act on an investment tip that they “like,” make sure you share these five important tips to keep your older clients from falling prey to online scams.


Source: SEC
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1. Be Vigilant of Red Flags<br><br>

If an update promises “guaranteed” returns with little or no risk, presses the reader to “BUY NOW,” or presents an offer to buy outside the U.S., or the advice sounds too good to be true, then steer clear.
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2. Don’t Answer Unsolicited Offers<br><br>

Such offers might be part of a fraudulent investment scheme so beware, says the SEC. Advise your clients to use extreme caution if they see an overly friendly post, tweet, direct message, e-mail or other unsolicited message.
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3. Fraud By Association<br><br>

If an older client receives an investment pitch through an online group of which they are a member, or in a chat room or bulletin board catering to his or her hobby or interest, advise that investor to screen it carefully, says the SEC. It might be affinity fraud, which involves scams that prey on members of identifiable groups, often seniors.
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4. Tighten Security Settings<br><br>

Encourage clients to get to know the privacy settings on their social networking accounts. Impress on them that unless they guard personal information, it might become available to anyone with access to the internet, including fraudsters.
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5. Do Background Checks<br><br>

The SEC warns advisors and clients to be skeptical. Investors should never judge the merits of an investment, or a representative’s integrity, without doing thorough research on both.


Also see:

10 Critical Social Media Tips for Advisors

Getting Social: The ROI

Meet the Tweets: 9 Advisors With Vast Twitter Followings

12 Terrifying Facts Keeping Boomers – And Their Advisors – Up at Night

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