We went to another AARP sponsored event, geared to seniors to teach us how to spot fraud and we learned a lot.
It was a sad eye opener on what could happen if you are cheated of your life savings by professional con people.
They said one of the big problems in Hawaii is our trust of our Ohana (family) and friends. When friends recommend someone, we are often so trusting that we don't do the "Due Diligence" (checking out the person ourselves before signing away anything).
Tung Chan, Security Commissioner of Hawaii from the Department of Commerce and Consumer Affairs talked about Affinity Fraud. These are "scams that prey on identifiable groups, often religious or ethnic communities".
Christine Kieffer (FINRA Investor Education Foundation) was here from Washington D.C. to tell us that if somebody tells you to invest with someone, you should check them out with FINRA (Financial Industry Regulatory Authority) and go to SaveAndInvest.org to check on the broker. The other speakers were also fabulous strengthening our resolve to be careful. (Remember those Rainbow vacuum cleaner salesmen?)
Con artists are experts at persuasion. They will use tactics called:
Phantom Riches: guaranteeing wealth or prospect of large gains
Source Credibility: They will lead you to think they belong to a creditable firm or have extensive experience. They often join church groups and clubs to gain the trust of members.
Social Consensus: They will lead you to think that other savvy investors have already invested and that you should too.
Reciprocity: They are counting on your reciprocity (giving you a free luncheon or dinner and making you feel like you have to buy something). "I'll give you part of my commission so you can have this great deal." The speakers said it's perfectly OK to throw away those address labels you get in the mail and not send money back to them.
Scarcity: They tell you that an opportunity is very scarce and soon to disappear. Create a false sense of the great bargain or investment opportunity being lost. "If you don't buy now I have several buyers waiting to pick this up now."
The interesting thing is that con artists don't target who you think they would. They have been going after people (often but not always men) who have a savings, think they know what they're doing, educated, etc. It's a scary world out there.
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But the fun part of the day was to see ourselves on the evening news. OK, so you can't really see me, but that's me over there taking notes for this post.
It was a sad eye opener on what could happen if you are cheated of your life savings by professional con people.
They said one of the big problems in Hawaii is our trust of our Ohana (family) and friends. When friends recommend someone, we are often so trusting that we don't do the "Due Diligence" (checking out the person ourselves before signing away anything).
Tung Chan, Security Commissioner of Hawaii from the Department of Commerce and Consumer Affairs talked about Affinity Fraud. These are "scams that prey on identifiable groups, often religious or ethnic communities".
Christine Kieffer (FINRA Investor Education Foundation) was here from Washington D.C. to tell us that if somebody tells you to invest with someone, you should check them out with FINRA (Financial Industry Regulatory Authority) and go to SaveAndInvest.org to check on the broker. The other speakers were also fabulous strengthening our resolve to be careful. (Remember those Rainbow vacuum cleaner salesmen?)
Con artists are experts at persuasion. They will use tactics called:
Phantom Riches: guaranteeing wealth or prospect of large gains
Source Credibility: They will lead you to think they belong to a creditable firm or have extensive experience. They often join church groups and clubs to gain the trust of members.
Social Consensus: They will lead you to think that other savvy investors have already invested and that you should too.
Reciprocity: They are counting on your reciprocity (giving you a free luncheon or dinner and making you feel like you have to buy something). "I'll give you part of my commission so you can have this great deal." The speakers said it's perfectly OK to throw away those address labels you get in the mail and not send money back to them.
Scarcity: They tell you that an opportunity is very scarce and soon to disappear. Create a false sense of the great bargain or investment opportunity being lost. "If you don't buy now I have several buyers waiting to pick this up now."
The interesting thing is that con artists don't target who you think they would. They have been going after people (often but not always men) who have a savings, think they know what they're doing, educated, etc. It's a scary world out there.
.jpg)
But the fun part of the day was to see ourselves on the evening news. OK, so you can't really see me, but that's me over there taking notes for this post.
So how did you get that great picture of the evening news???
ReplyDeleteCon artists prey on lonely people who will give their life savings away just because of the attention and conversation.
It's amazing what great photos the iPad can take of the TV screen isn't it?
DeleteI see you, I see you! Good for you for going there and reporting on it.
ReplyDeleteDid you get that picture by taking a picture of the TV with your camera? It's very good, however you got it. Congratulations on attending this seminar and thank you for sharing this information. :-)
ReplyDeleteYes, the iPad does an amazing job if you bring it close to the TV screen.
DeleteI agree with Grany Annie in that elderly frequently are fascinated by the attention and the concern of the person making the offer. They have not been very social. I read your list and those very things are the ones that make me suspicious of any offer. I tend to be the cynic in the family and hubby is far more trusting.
ReplyDeletenow that is scary, horrible isn't it the way people can be robbed of their life savings by con men, so sad, or con women
ReplyDeleteThis is great information. The sad thing is that even very smart people can fall for a scam. We all need to keep in mind that "too good to be true" probably isn't true.
ReplyDeleteThey told us that it's often the smart people who think they know what they are doing who are scammed.
DeleteYour mom needed to come too...but you are there to protect her...
ReplyDeleteThe session was three hours long and all of it in English, of course. It would have been torture for mom.
DeleteGood information. This is a topic I just started researching for a story I am writing. Enjoy your moments of fame.
ReplyDeleteBoy, you are everywhere...and an inspiration to us local homebodies that do nothing but stay at home lol. I'm guessing you still have lots of mainland style living in your blood. Hmmm...because of its largeness you're more apt to get up and go.
ReplyDeleteL...w
Sometimes, we go out just to give me something to blog about. My daughter tells me she likes the fact that I blog because it keeps me active.
DeleteA sad comment on human nature. We have phone calls and emails and snail mail all the time. The latter goes into the recycle bin automatically. We don't even open it. Both of us have been burned. Once burned, twice shy.
ReplyDeleteA good rule of thumb....nothing is free.
Dianne
That's what we have to remember. Nothing much is free. There's always a catch.
DeleteCongrats for your brief flicker of fame! Glad you got something out of the seminar.
ReplyDeleteI came to catch up Kay and you always have the most interesting posts to read...hugs..Michelle
ReplyDeleteThanks for sharing this important info Kay! Lol, I see you there in the audience.
ReplyDeleteI could never watch myself on the news. I got on the front page of the local paper, and it was an embarrassing day.
ReplyDeleteThe real question about those address labels is, can you use them without GUILT? :-) I'm always so glad when they get something wrong, and I can just trow 'em away.
ReplyDeleteTo be honest, Hank, I do use those address labels with not a whole lot of guilt.
DeleteWe use 'em with no guilt whatever. Did you ask anyone to send them to you? Good post Kay; you do a fine service by publicizing this sort of thing.
ReplyDeleteThank you, Dick. I agree completely and that's what the speakers were saying, too.
DeleteI was surprised that my cousin, who is very smart, is willing to talk to scammers on the telephone. I have told her to get caller ID and not to answer the phone unless she knows who is calling.
ReplyDeleteI'm worried right now about people who move in on elders who are alone and exploit them. We have one very bad case in this neighborhood and are trying to figure out a strategy. This concerns a man over 80 and a potentially dangerous younger man who is belligerent and rude when asked how the older man is doing. And we have not seen the older man in some time.
It's not as easy to deal with these matters as you might think, but we are doing our best.
I am always amazed by people who fall for scams, and then I realize that I might not be so smug about it when I am 85.
ReplyDeleteAnd I use the address labels quilt free, but only the pretty ones. :)
We just talked to cousins who said they were scammed by someone in their child's scouting group. It's pretty awful. They lost everything they put in, even though the scammer was put in jail.
DeleteAARP also sponsors a driving refresher course for Seniors. I've taken it twice and thought it was worthwhile. They have a cool way to figure out if you're the right distance behind the car in front of you. Pick out any landmark, like a telephone pole, and observe when the car in front of you passes that pole. Then count 1-2-3. If you pass the pole on the count of 3 (to me 4 is better), you're a safe distance away.
ReplyDeleteI'm really enjoying the AARP activities and their magazine. That does sound like a wonderful driving tip.
DeleteKay - thanks for the excellent notes. Just hope I'm not tested too much when I'm 85. Cool that you were on TV! Your cousin's scout troop needs to report the "bad guy" to local consumer groups and the scout offices, all the way up to national. Not cool. DrumMajor
ReplyDeleteActually, the fellow is now in jail, but he scammed a lot of people including relatives that my cousins pulled in because he thought it was going to be great for everybody.
Delete