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.
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.
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.
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