1. Department of Commerce & Consumer Affairs Business Registration Division Office of the Securities Commissioner Investor Education Program

2. “HOW TO SPOT A CON ARTIST & PROTECT YOURSELF AGAINST INVESTMENT FRAUD” INVESTMENT FRAUD State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

3. Lesson One NEVER Give Your Money To Anyone Unless You Know What They Are Going To Do With Your Money. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

4. Lesson Two Read Everything You Sign!  Take Time to Understand the Information Before you Sign.  Ask A Family Member Or Friend To Assist You. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

5. Lesson Three CALL US…We can help! CALL US…We can help!  Confidential Process  Scam Line = 58SCAMS or toll free 877-HI SCAMS  Report Fraud - leave a message with your contact information and we’ll get back to you. State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

6. Threats to Investors Ponzi SchemesPonzi Schemes Unlicensed Individuals Selling SecuritiesUnlicensed Individuals Selling Securities Unregistered Investment ProductsUnregistered Investment Products Affinity FraudAffinity Fraud Variable Annuity Sales PracticesVariable Annuity Sales Practices State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

7. Why Con Arists are Increasingly Targeting Seniors? Seniors have SavingsSeniors have Savings Seniors have TimeSeniors have Time Seniors are TrustingSeniors are Trusting State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

8. Why Seniors Fall for Con Artists?  Planning for Retirement  Looking for a Good Deal  Getting a Windfall  Catching Up: Concerned About Haven’t Saved Enough  Stretching: Concerned Money Won’t Last and Financially Stressed  Trusting and Failing to Verify  Inexperience and Unaware Provided by ARRP State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

9. Con Artists Use “Statements”  I Just Got A Hot Tip / This Is A Sure Thing  No Other Investment Will Give You Similar Returns  Guaranteed, Or Your Money Back  Everyone Who Invested Got Rich  You Have To Invest Today / It Can’t Wait Until Tomorrow State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

10. Con Artists Like To  Use High Pressure Sales Tactics To Make Things Happen… TODAY  Deal In Cash  Try And Obtain Financial Account Info State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

11. Con Artists Push Poorly Understood Financial Products  They Don’t Want You To Know What You Are Buying  Too Complicated To Explain  Trust Me  Simply Stated or Explained In General  Unsuitable State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

12. Con Artists Bring Out The Worst In You  Greed - Who Wants to be a Millionaire?  Fear - What If You Get Sick?  Insecure - You Won’t Have Enough Money! State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

13. Con Artists Don’t Like To Be Contacted  You Can’t Call Them Or Visit Their Office “NO Service” State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

14. Con Artists Dress For Success  Use Their Appearance  Talk About How Wealthy They Are State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

15. Con Artists Are Fair Weather Friends  Once You Invest, They Are No Longer Friendly Or Come Around State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

16. Where to Watch for Con Artists  Free Meal “Seminars”  Country Club  Church  Telephone Hot Tip  Phony Fax Tip Not Supposed To Get  Fancy Offices  Living Room  Direct Mail  Internet Provided by ARRP State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

17. How To Protect Yourself  Do Your Homework  Check With State Regulators – DCCA Securities Branch – We’re here to help!  Check With Better Business Bureau  Ask For Things In Writing  Understand What You Are Investing In State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

18. How To Protect Yourself  Don’t Be A “Courtesy Victim”  Always Stay In Charge Of Your Money  Never Judge A Person’s Integrity By How They Look & Sound  Monitor Your Investments  Call on a Confidential Line 58SCAMS or toll free 877-HI SCAMS to report investment fraud State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

19. Remember  If It Sounds Too Good To Be True… It Usually Is  If You Don’t Understand What You Are Investing In… You Shouldn’t Be Investing In It  Understand The Risks - Every Investment Has Some Degree of Risks  The Promise of a Big Profit Brings Greater Risk And Most Importantly, Your Greatest Protector Against Investment Fraud… Is Yourself State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program

20. FOR MORE INFORMATION Contact Our Office: State Of Hawaii Department Of Commerce & Consumer Affairs Office of the Securities Commissioner 335 Merchant Street Honolulu, HI 96813 Website: investing.hawaii.gov To Report Investment Fraud call 58SCAMS or TOLL FREE 1-877-HI SCAMS State of Hawaii DCCA, Office of the Securities Commissioner – Investor Education Program