Secretary of State warns against pension advance scams
INDIANAPOLIS (WISH) – An advisory recommending pensioners and investors to steer clear of pension advance scams has been issued.
According to a release from Secretary of State Connie Lawson, the advisory was issued Thursday.
“It is deplorable that scam artists have found yet another way to target the most vulnerable among us,” stated Secretary Lawson. “Unfortunate circumstances put pensioners into a position where they are forced to jeopardize their financial future in order to meet immediate financial demands. These same scam artists then go on to dupe investors by offering investments in illicit securities comprised of ill-gotten pensions.”
The pension advance scams offer pensioners lump sums in exchange for their future pension payments. The scam targets individuals who are set to receive large cash entitlements in the form of a pension to be paid out over time. Some victims find themselves in a situation where they need access to fast cash, in these situations scam artists then bundle the cash entitlements and sell them as an investment opportunity.
“While our office has yet to bring charges against individuals committing pension advance scams, we firmly believe the best form of prevention is education,” stated Securities Commissioner Alex Glass, “Those who suspect they or their loved ones have fallen victim to securities fraud should not hesitate to contact the Secretary of State’s office at (317) 232-6681.”
Click here to view the full investor advisory.