U.S. Commodity Futures Trading Commission Office of Consumer Outreach Social Marketing and Research Overview May 22, 2014 1
These remarks are my own and do not necessarily reflect the views of the CFTC Chairman, Commissioners, or staff.
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CFTC Consumer Outreach Step 1 – Behavior Change Objectives Recognize the signs of persuasion before investing Checking the background of any financial product or person Reporting suspected or known incidents of fraud
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CFTC Consumer Outreach Step 2 – Target Audience Determination Aged 50-65 Men & Women “Middle to upper” household income Financially literate / familiar with financial products & services
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CFTC Consumer Outreach Step 3 – Message Testing & Framing
Mindset
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CFTC Consumer Outreach “Compared to other people you know …what statement best describes your investment research and skills?” 15% 0% 6%
46%
32%
Know more Know somewhat less
Know somewhat more Know less
Know about the same 6
CFTC Consumer Outreach “Generally speaking, how concerned are you about unknowingly being part of a fraudulent investment?” 11%
21%
40% 28%
Very
Somewhat
Not too
Not at all
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CFTC Consumer Outreach Please indicate how likely you believe it is that such a situation could happen to you.
79%
51%
34%
10%
15%
12%
Invest in something that later turns out to be fraudulent Less Likely (0-49% chance)
Be approached by a financial fraud perpetrator, whether directly, through a cold call, or through an unknowing friend
Unsure (50/50 chance)
More Likely (51-100% chance) 8
CFTC Consumer Outreach 36% Disagree
36% Agree
I have enough instincts and experience to identify a fraudulent deal without having to 7% specifically confirm the legitimacy of it.
Strongly Agree Neither Agree nor Disagree Strongly Disagree
29%
28%
24%
12%
Somewhat Agree Somewhat Disagree 9
CFTC Consumer Outreach
If you suspected an investment you were part of was fraudulent, how likely would you be to take any of the following actions? Report it to a federal financial agency such as the SEC or the CFTC
63%
Report it to your state’s Attorney General
61%
28%
Do my own internet research to verify their legitimacy
61%
28%
27%
Report to a consumer group like the Better Business Bureau or Chamber of Commerce
57%
27%
Report it to local law enforcement like the sheriff or state police
56%
28%
Report it to a federal law enforcement agency such as the FBI
55%
Contact a lawyer for a possible lawsuit Contact a professional financial advisor Very likely
45% 40%
26% 35% 31%
Somewhat likely 10
CFTC Consumer Outreach “Which of the following, if any, would you be most concerned about when it comes to reporting suspected fraud? Please pick the top 2.” 31%
I would not recover any of my financial losses
Governmental authorities I would report to would not follow through on my complaint
26% 21%
It will cost even more of my money to investigate
I would have to reveal details about my personal and financial information to authorities
7%
I could falsely accuse someone and ruin their career
6%
Reporting will take up too much of my personal time
5%
Other/None of the above
5% 11
CFTC Consumer Outreach
“How important is each of the following sources for you personally when it comes to researching potential investments?” Very important
Somewhat important
Professional financial planner or accountant
37%
A financial government agency like the SEC or the CFTC
34%
Specific website(s) dedicated to investment news and advice
23%
Business or financial media (e.g. Forbes, Wall Street Journal, CNBC)
22%
Website of a well-known, brand name investment company
27%
General web search
21%
45%
A professional stock broker
23%
40%
Syndicated investment research and subscription newsletters
11%
Family member or friend with investment experience
10%
An investment seminar/program
9%
39% 40% 51% 50% 44%
37% 32% 31% 12
CFTC Consumer Outreach Step 3 – Message Testing & Framing
Behaviors
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CFTC Consumer Outreach
What Do You Do When Selecting a Professional Financial Advisor? Personally interview
46%
Review performance history
38%
Find affiliations with known investment firms
34%
Talk to references
30%
Confirm certifications and education
30%
Get referral from a past client Perform a general internet search on advisor I do not use a professional financial advisor Look for any past violations from the government
28% 27% 25% 22% 14
CFTC Consumer Outreach What Do You Mostly Rely on When Verifying Financial Professionals? 4% 18%
Your experience & instincts
Some research into financial advisor 50% 28%
Extensive research into financial advisor Not sure 15
CFTC Consumer Outreach “Have you ever invested money in something that turned out to be fraudulent?”
How many times?
3%
75%
9% 3%
Yes
88%
No
6%
16%
More 3 times 2 times 1 time than 3 times
Don't know % Yes Concerned (12%) Not concerned (6%)
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CFTC Consumer Outreach Step 3 – Message Testing & Framing
Message Strategy 17
CFTC Consumer Outreach Capture Attention: Indirect Fraud Appeal
Use expert tools and tips to assess investment opportunities and make better decisions
Educate: Direct Fraud Appeal
Even seasoned investors need to stay on top of the latest fraud schemes to protect themselves
Outsmart fraud perpetrators by using BASIC
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CFTC Consumer Outreach Language Library
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CFTC Consumer Outreach 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”
Step 4 – Outreach Strategy -- √ Channels that reach the target audiences When, where, and how to utilize these channels Measurement instruments for each channel
Step 5 – Campaign Design -- √ –Step 6 – Outreach Implementation – June 20
CFTC Consumer Outreach Steps 4 & 5 – Campaign Design & Outreach
Outreach Strategy 21
CFTC Consumer Outreach
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CFTC Consumer Outreach
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CFTC Consumer Outreach
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CFTC Consumer Outreach
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CFTC Consumer Outreach
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CFTC Consumer Outreach
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CFTC Consumer Outreach
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CFTC Consumer Outreach Measurement, Evaluation, and Revision
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CFTC Consumer Outreach Evaluation by Measuring Outputs, Outcomes, and Impact Understand the difference between measuring: Outputs – Website traffic, media coverage, materials distributed, attendees – “CFTC microsite” Outcomes – Changes in behavior, knowledge, beliefs, opinions, perceptions and values – “drop in the percent who are concerned about government follow through on reported fraud” and “increase in reported searches for proper registration and/or past violations” Impacts – Lives saved, injuries avoided and financial crimes/fraud prevented – “in the long-run, less fraud” 30
CFTC Consumer Outreach CFTC Measurement & Evaluation Output Measures • Campaign reach/visibility • Ad/content performance • Site traffic • Increased use of tools
Outcome Measures • Increased fraud sign awareness • Increase in reported background checks • Increased tip & complaint volume
Impact Outcomes • Fewer fraud cases • Decrease in reported fraud
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CFTC Consumer Outreach Summary
Mindset
• Confident • Feel current research is adequate • Think reporting might be pointless
Behaviors
• Don’t report doing background checks • Some do report being fraud victims
Message Strategy
• Expand definition of successful investing to include our desired behaviors
Evaluation and Revision
• Outputs we can measure directly • Outcomes directly with complaints, and others with a survey 32
CFTC Consumer Outreach Lessons Learned
Explaining Why
• Constantly explaining how and why • Navigating other divisions ideas
Government Realm
• Speed is entirely different than a commercial enterprise or nonprofit • Government controls slow things
Interim Actions
• Needed to still act • Allowed testing of outreach
Ultimate Value
• Our self-reliant assumptions would have been wrong • Superior end product 33
U.S. Commodity Futures Trading Commission Consumer Outreach Office Michael Herndon Consumer Outreach Officer
[email protected] 1-202-418-5242 Information – www.cftc.gov/ConsumerProtection/Resources Newsletter subscription – 34 www.cftc.gov/ConsumerProtection/EducationCenter
