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New Campaign Helps Older Investors Fight Back Against Fraud By Teaching Them How to Spot and Resist Persuasion Techniques, "Ask and Check" Before Making Financial Decisions

FINRA Investor Education Foundation, AARP and Florida Financial Regulators Offer Free Training and Tools to Help Investors Avoid Falling Victim to Fraudsters

Orlando, FL — A comprehensive new pilot program is underway in Florida to reduce the incidence of investment fraud among older investors. The program features hands-on training and online resources at SaveAndInvest.org/55Plus, developed by the FINRA Investor Education Foundation in partnership with AARP and the Florida Office of Financial Regulation, to teach investors ages 55 and older the tactics commonly used by fraudsters and the simple steps every investor can take to reduce their risk of being defrauded. The Villages, FL is one of two communities specially selected to pilot this program, which will rollout nationally in the coming months.

This pilot program is a response to FINRA Foundation-funded national research in 2006 that shattered the stereotypes of investment fraud victims. It found that typical victims are financially knowledgeable; have an above average income; are college educated; and are self reliant when it comes to making decisions. And while a majority of investors ages 55 to 64 do not perceive themselves as vulnerable to investment fraud, their reported investment behaviors, as identified in further research, puts them at risk. In fact, a majority of investors indicated that they did not check either the licensing of a broker or the registration of an investment product — two important steps to take before making any investment decision.

"Even if you have never heard an investment fraudster's sales pitch, you probably know somebody who has, because fraudsters tend to go 'where the money is' — and that means targeting older Americans who have accumulated sizeable retirement nest eggs," said Mary L. Schapiro, Chairman of the FINRA Investor Education Foundation, who also serves as CEO of FINRA. "Through this Investor Protection Campaign, the FINRA Foundation is providing free information and tools and offering simple steps that older investors can take to avoid becoming victims of fraud and to keep their investments safe now and in the future."

Throughout the months of May and June, the FINRA Foundation will be in The Villages providing persuasion training sessions and investor education seminars that will help residents unravel "the psychology of a scam." These hands-on activities are designed to teach older investors how to spot and resist persuasion tactics often used by fraudsters, how to verify the legitimacy of investment products and professionals and how to report suspected investment fraud.

"The truth is, anyone with money is bound to hear from a fraudster at some point," said Don Saxon, Commissioner of Florida's Office of Financial Regulation. "By checking out investment opportunities and professionals, investors can better distinguish good offers from bad ones."

Free tools on www.SaveAndInvest.org/55Plus include a Scam Meter to help spot red flags in an investment pitch, as well as a Risk Meter to help individuals identify characteristics and behavior traits that may make them vulnerable to investment fraud. Campaign messages and materials will also communicate key strategies to prevent being taken in by investment fraud, including:

1. Ask questions and verify answers. Take time to learn about investments and the professional selling them. Turn the tables and ask questions to verify the legitimacy of an investment and investment professional.
   
   
2. Check out the seller. Before giving out personal information, ask whether the seller is registered with the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) or Florida's Office of Financial Regulation. Find registration and other information on individual brokers, securities firms and investment advisor firms on BrokerCheck at www.saveandinvest.org/55Plus or by calling (888) 295-7422.
   
   
3. Check out the investment. Confirm whether a security is registered with the SEC and get access to a company's financial information by using the SEC's EDGAR Database, also accessible through www.SaveAndInvest.org/55Plus.
   
   
4. Beware of exaggerated claims. Any claim that sounds too good to be true is. Visit www.SaveAndInvest.org/55Plus to learn about persuasion tactics commonly used to perpetrate investment fraud.
   
   
5. Practice saying "no." Know your exit strategy from any investment conversation. Be prepared to end the conversation and tell anyone who offers you an investment product: "I am sorry, I am not interested. Thank you."

"This is a top issue for our members and their families," said Jean Setzfand, Director of Financial Security for AARP. "By asking key questions and taking simple steps, older investors can turn the tables on potential fraud and carry the message on to their friends and family." On May 6, 2008, The Villages Lifelong Learning College will host the FINRA Investor Education Foundation and its partners for a free investor forum and lunch at Colony Cottage Recreation Center. Seating is limited, so advance registration is required. To register and for additional information, call The Villages College at 753-3035 course number 352-236-1101, or visit www.SaveAndInvest.org/55Plus. Additional interactive workshops will be presented through The Villages College throughout the months of May and June.


The FINRA Investor Education Foundation supports innovative research and educational projects that give investors the tools they need to better understand the markets and the basic principles of saving and investing. To date, the FINRA Foundation has approved $14.6 million in grants and an additional $14 million in direct investor education programming. For details about grant programs and other FINRA Foundation initiatives, visit www.finrafoundation.org. The Foundation's parent, FINRA, the Financial Industry Regulatory Authority, is the largest non-governmental regulator for all securities firms doing business in the United States. For more information, visit www.FINRA.org.

The Florida Office of Financial Regulation is dedicated to safeguarding the private financial interests of the public by licensing, chartering, examining and regulating depository and non-depository financial institutions and financial service companies in the State of Florida. The Office protects consumers from financial fraud, while preserving the integrity of Florida's markets and financial service industries.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. They produce AARP The Magazine, published bimonthly; AARP Bulletin, a monthly newspaper; AARP Segunda Juventud, a bimonthly magazine in Spanish and English; NRTA Live & Learn, a quarterly newsletter for 50+ educators; and a website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.