Over the past few decades, there has been a rise in the amount of savings individuals need to live in relative comfort after retirement. CNBC points out that this ongoing increase comes with inadequate Social Security cost-of-living adjustments, meaning retirees may experience even more financial difficulty. 

Due to this, the elderly often find themselves forced to rely on investments to ease the burden of living on a small fixed income. This makes them susceptible to investment fraud in the form of ventures that conceal hidden dangers. 

High-cost indexed life insurance

This is a policy linked to a market index that entices many with its flexibility (the insured chooses the payment amounts) and the possibility of high returns (the cash account fluctuates with the stock market). However, it is a double-edged blade with hidden downsides. 

Just as the holder has a say in the amount paid, the indemnifier may raise premiums. The cash value of the account may go down just as easily as it may go up. There are also many fees besides the premiums. Finally, even though it is supposedly permanent, it may actually lapse if investment returns are not high enough, forcing individuals to funnel in money of their own to prevent this from occurring. 

Investment products

There are many ventures, like Ponzi schemes, that claim to provide high returns without asking for equivalent input. These tend to result in loss of money rather than gain. Unsolicited offers, contact info without a solid address, unwarranted pressure, and lack of a way to reach out are also possible signs of a fishy scenario. 

It is easy for vulnerable retirees to fall prey to a false investment scheme. It is important to be wary of any offer that promises unrealistic returns.