We know that younger drivers are more likely to get in accident than drivers in their forties. This probably is due to a combination of factors -- a lack of experience plays a role, but also teenagers tend to process situations and evaluate risk differently than their older counterparts.

Is the same true for investing? Money's Jason Zweig looks at the ways that senior citizens are likely to differ from younger investors: "New research by finance professor Alok Kumar shows that the average investor exhibits an 'abrupt and significant drop in performance around the age of 70,' probably because of fading memory and rising impulsiveness."

It turns out that older investors may actually be less risk-averse, and more willing to gamble, than their younger counterparts. Combine this with the tendency for memory problems and less agile mental processing in the later years, and you have a group of people who are extremely vulnerable to hucksters and charlatans selling life insurance, stocks, or business opportunities.

If you are concerned about your aging parents being targeted by con artists, check out Fraud.org's page on elder fraud and the Consumer Action's Elder Fraud Leader's Guide.

One of the first lessons of economics is that there is no such thing as a free lunch and, if you sign up for one of those free lunch investment seminars, you may be exposing yourself to fraudulent marketing practices.

According to the Associated Press, "An investigation by federal and state regulators of "free lunch" investment seminars aimed at seniors has found high-pressure sales pitches masquerading as educational sessions, pervasive misleading claims for unsuitable financial products, and even fraud."

Senior citizens are big targets for investment fraud, and the free lunch seminars are very successful in attracting this sought after demographic. Among the findings of the regulators who conducted the investigation in seven states:

--The "educational sessions" advertised are generally little more than sales pitches, and attendees are often pushed to open accounts or buy products that day.

--Nearly 60% of the 110 investment firms and branch offices examined showed evidence of weak supervision of the employees running the seminars, including failure to review the seminar materials.

--About half of the seminars included false or misleading claims and 13% included what appeared to outright fraud.

--23% suggested investments that were unsuitable.

None of this is really that surprising. No one is going to buy you a nice lunch at an upscale country club unless there's something in it for them. And you certainly shouldn't expect unbiased investment wisdom with your complimentary fillet mignon. If you want an unbiased advice, seek the assistance of a fee-only financial adviser or read a book like Andrew Tobias's The Only Investment Guide You'll Ever Need or perhaps Why Smart People Do Stupid Things With Money.

And remember: there's no free lunch. Remind Grandpa, too.

A piece in the Sunday New York Times tells the sad story of Richard Guthrie, a 92-year-old man who was defrauded of his life savings through an elaborate scheme perpetrated by criminals posing as telemarketers. These evil people take advantage of elders like Mr. Guthrie, who are particularly susceptible to fraud because they may be too trusting or lonely, and in dire financial straits. In Guthrie's case, he was living on the $800 per month he receives from Social Security. He passed the time since his wife passed away by entering sweepstakes contests, and the promoters frequently, and knowingly, sold his personal information to unscrupulous people.

Elder fraud strikes me as the most evil of white-collar crimes, and I did some looking around on the internet for resources for understanding and preventing the financial abuse of the elderly.

I have a copy of ex-con turned private investigator Barry Minkow's Frauds Gone Wild: Protecting Yourself from Elder Abuse. The DVD provides an entertaining look at the psychology of this crime, as well as offering an acronym that provides some suggestions for how to avoid being taken. While it strikes me as expensive at $17.99, it's a must for senior centers or church groups. Watch it with friends.

Fraud.org also has a nice section on elder fraud and telemarketing fraud, as well as Five Tips for Protecting Elders from Telemarketing Fraud. The Department of Justice also has a piece on why seniors are so vulnerable to fraud, and how to prevent it.

If you have elderly parents, or perhaps a neighbor, I strongly recommend reading through these materials, and discussing these issues with them. I had a nice talk about it with my grandmother today.