This presentation by Michael Herndon was made at the High-level Global Symposium on Financial Education: Promoting Long-term Savings and Investments in Korea which explored policies and good practices for supporting long-term savings and investments through financial education and financial consumer protection. Find out more at http://www.oecd.org/daf/fin/financial-education/globalsymposiumonfinancialeducationforlong-termsavingsandinvestments.htm

1. U.S. Commodity Futures Trading Commission
Consumer Outreach Social Marketing and
Research Overview
High-level Global Symposium on Financial Education
26-27 February 2014, Seoul, Korea
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2. CFTC Consumer Outreach
Step 1 – Behavior Change Objectives
Looking for the signs of persuasion before investing
Checking the background of any financial product or person
Reporting suspected or known incidents of fraud
Step 2 – Target Audience Determination
Aged 50-65
Men & Women
University educated
“Middle to upper” household income
Primary investment decision maker in household
Financially literate / familiar with financial products &
services
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3. CFTC Consumer Outreach
Step 3 – Message Testing & Framing
Not Too or
Not At All
Concerned = 49%
Very or
Somewhat
Concerned =
51%
“Generally speaking, how concerned are you about unknowingly being part of a
fraudulent investment?”
3Source: CFTC Investment Fraud Survey, February 2014. Sample: 1,107 investors ages 50-65 with household incomes of $60,000 or more, and who are financial decision makers in
the household and familiar with a set number of common investment products. Results cannot be used to project attitudes and behaviors among the general investing public.

4. CFTC Consumer Outreach
“Once investment fraud is discovered, how much of the financial losses do you
think a victim of fraud usually recovers?”
Total
(n=1,107)
Concerned
(n=542)
Not Concerned
(n=565)
All 1% 2% 1%
Most 2% 3% 2%
About half 2% 3% 2%
Less than half 43% 42% 44%
None 42% 42% 42%
Don’t know 9% 9% 9%
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5. CFTC Consumer Outreach
Total
(n=1,107)
Concerned
(n=542)
Not Concerned
(n=565)
Yes 9% 12% 6%
No 88% 83% 94%
Don't Know 3% 5% 0%
“Have you ever invested money in something that turned out to be fraudulent?”
“If Yes: How many times have you invested money in something that turned out
to be fraudulent?”
Total
(n=100)
Concerned
(n=65*)
Not Concerned
(n=35*)
One time 75% 69% 86%
Two times 16% 20% 9%
Three times 6% 9% 0%
More than three times 3% 2% 6%
5* Small base size

6. CFTC Consumer Outreach
Very or Somewhat
Interesting
Strongly or
Somewhat Agree
it is
Believable
Strongly or
Somewhat Agree
it is
Personally
Relevant
[Affirmation] Responsible investors are vigilant about not only
researching the potential of an investment to deliver a good
return but also the potential for an investment to be fraudulent
72% 85% 55%
[Own Thinking] Even seasoned investors know they cannot
afford to solely trust the judgment of friends and family
without doing their own verification, including learning the
signs of investment fraud.
71% 90% 53%
[Need for lifelong learning] Financial fraud perpetrators
constantly change their tactics and improve their schemes,
making it important for even seasoned investors to stay one
step ahead of the latest scams to protect themselves
69% 88% 49%
[Risk] Learning more about how to identify and avoid
investment fraud is one of the most important ways to assess
the true risk in your investment portfolio, which will mean a
huge difference in your retirement years
69% 79% 52%
[Victim Identification] Experienced investors are prime targets
for financial fraudsters because they have the confidence to
take risks and the resources to make fraud worthwhile.
59% 67% 33%
Among those “Not Concerned”
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7. CFTC Consumer Outreach
Total
(n=1,107)
Concerned
(n=542)
Not
Concerned
(n=565)
I would not recover any of my financial
losses
31% 30% 31%
Governmental authorities I would report to
would not follow through on my complaint
26% 26 26%
It will cost even more of my money to
investigate
21% 21% 21%
I would have to reveal details about my
personal and financial information to
authorities
7% 8% 6%
I could falsely accuse someone and ruin their
career
6% 6% 6%
Reporting will take up too much of my
personal time
5% 4% 5%
Other/None of the above 5% 4% 5%
“Which of the following, if any, would you be most concerned about when it
comes to reporting suspected fraud? Please pick the top 2.”
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8. CFTC Consumer Outreach
Total
(n=1,107)
Concerned
(n=542)
Not Concerned
(n=565)
Personally interview 46% 49% 44%
Review performance history 38% 46% 31%
Find affiliation with known investment firms 34% 37% 31%
Confirm certifications and education 30% 36% 24%
Talk to references 30% 35% 26%
Get a referral from a past client 28% 30% 27%
Perform a general internet search on advisor 27% 32% 23%
Look for any past violations from the government 22% 28% 17%
None of these 3% 2% 4%
Do not use a professional financial advisor 25% 20% 30%
“Which of the following do you generally do when selecting a professional
financial advisor? Please select all that apply”
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9. CFTC Consumer Outreach
Step 4 –
Outreach
Strategy &
Graphics
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10. CFTC Consumer Outreach Anti-fraud
Campaign Development
Step 1 – Desired Behavior Change Determination -- √
Step 2 – Target Audience Identification -- √
Step 3 – Message Testing & Framing -- √
 Nine qualitative focus groups
 Quantitative survey report and “message style guide” due March
Step 4 – Outreach Strategy & Graphics -- May
 Channels that reach the target audiences
 When, where, and how to utilize these channels
 Measurement instruments for each channel
Step 5 – Outreach Implementation – June
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11. U.S. Commodity Futures Trading Commission
Consumer Outreach Office
Michael Herndon
Consumer Outreach Officer
mherndon@cftc.gov
1-202-418-5242
Newsletter subscription – www.cftc.gov/ConsumerProtection/EducationCenter
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