A free lunch could cost you dearly.

Released Thursday, an AARP survey found that many older people invited to free lunch seminars were pitched investments that were unsuitable for them or were asked for information that could expose them to financial fraud.

In the survey of more than 1,000 people age 55-plus conducted this summer, 63 percent said they had received an invitation to a free financial seminar in the mail. Among those who received either mail or e-mail invitations, 57 percent said they had been sent five or more invitations. About 9 percent of respondents said they had attended a free financial seminar in the past three years, a rate that translates into nearly 6 million people over 55 nationwide.

As for those who attended seminars, 39 percent said that they were solicited to buy financial products, and 50 percent said they were asked to provide information about their finances. Almost half (46 percent) said the seminar presenter tried to make a follow-up appointment at their home.

“This survey illustrates the lesson that nothing is truly free when it comes to your financial security,” says Jean Setzfand, director of financial security at AARP. “Oftentimes, those who attend free lunch seminars have no idea that they are potential targets of financial fraud.”

What the monitors heard

To raise public awareness about the possible dangers of attending free lunch seminars, AARP launched the Free Lunch Monitor program in conjunction with the North American Securities Administrators Association (NASAA) in October 2008. Afterward, 180 volunteers who monitored the lunches reported their experiences to AARP.

Many of the volunteers said presenters at the seminar had discussed annuities, a type of investment that is often inappropriate for older retirees. Of these volunteers who heard about annuities:

• 39 percent were encouraged to buy an annuity.

• 48 percent said the speaker never disclosed risks associated with annuities, though 43 percent said the investments were pitched as “low-risk.”

• 67 percent said the speaker never informed them that there are expensive surrender charges and tax penalties when annuities are canceled early.

Among all the volunteers, 54 percent said they were told about investment products that promised returns of 7 percent or more.

“Low risk, high reward is a red-flag warning for possible investment fraud,” says Texas Securities Commissioner Denise Voigt Crawford, the current president of NASAA. “I encourage all seniors to investigate before they invest in any offer served at a free lunch seminar. State securities regulators offer extensive employment, disciplinary and registration information about those who sell securities or offer investment advice.”

If you attend a seminar

If you attend one of these seminars, consider these tips:

• Don’t give out your personal financial information, and don’t sign or purchase anything during the seminar. Take your time and investigate whether an investment opportunity is right for you.

• Make sure you understand the details of an investment and ask questions if you don’t. If you still need clarification, ask for details in writing so you can study them on your own.

• Before you attend a seminar, check to make sure the sellers have appropriate licenses. Contact your state securities or insurance regulator or go to NASAA’s website to research investment advisers or to report concerns of unrealistic claims or unsuitable investments.

• If you schedule any follow-up meeting, go to the salesperson’s office instead of agreeing to an appointment in your home. It’s hard to get someone to leave once he or she is in your living room.

Carole Fleck is a senior editor at the AARP Bulletin.