Innovative Techniques for Delivering/Evaluating Programmes

Innovative Techniques for Delivering/Evaluating Programmes

IFIE/IOSCO Global Investor Education ConferenceNovember 9, 2010

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1Evaluating An Investor Protection Campaign

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What We Learned: Victim Profile

Male

55-65 years old

More financially literate

College-educated

Recent change in financial or health status

Higher income

Risk-takers

Victim demographic trends:

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What We Learned: Key Risk Factors

Owning high-risk investments

Relying on friends, family, co-workers for advice

Being open to new investment information

Failing to check background and registration of financial professional and product

Being unable to spot persuasion

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What We Learned: Persuasion & Investment Fraud

Analysis of over 300 undercover fraud tapes

Most frequently used persuasion tactics:

► Phantom Riches

► Source Credibility

► Social Consensus

► Reciprocity

► Scarcity

Average # Total Tactics per Transcript

13.35

6.47

0

4

8

12

16

Avg # Tactics

Investment

All Others

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Response: “Outsmarting Investment Fraud”

Three-part Curriculum:

Risk - Know the risk factors for investment fraud

Persuasion - Know the most common tactics used

Prevention - Know the most powerful fraud prevention strategies

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Impact: Evaluation of the Curriculum

► Recruit investors to attend one of two workshops.

► Deliver new curriculum to the first group, then put both groups in a hypothetical “fraud situation”

► Measure difference in resistance to fraud appeal.

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Impact: Evaluation of the Curriculum

Those who had been to the OIF seminar responded positively to the fraud appeal 50% less frequently than those who had not.

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Delivering An Investor Protection Campaign

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Free Resources

►Partner Toolkit

►Curriculum CD

►Flip Charts

►Documentary

►Handouts Fighting Fraud 101 Investor Kits Playing Cards

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Partner Toolkit

► Reaching your audience

► Tips for conducting outreach

► How to plan events

► Event planning templates

► How to use the Outsmarting Investment Fraud Curriculum

► How to use the “Trick$ of the Trade” documentary

► Outreach tools and materials

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Curriculum CD

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Flip Charts

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Documentary

► 51 minute, broadcast quality documentary

► Modeled after Outsmarting Investment Fraud curriculum

► Features interviews with victims and con criminals

► DVD Distribution

► Public Television Distribution

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Where to Learn More

Fraud Prevention Web Site: www.saveandinvest.org

Questions? John GannonSenior Vice President FINRA Investor Education(202) 974-2842john.gannon@finra.org