Financial fraud is far too common in Native American communities, and is a growing problem with the recent increase in tribal lawsuit settlements with the federal government. First Nations Development Institute has partnered with the FINRA Investor Education Foundation to produce a pamphlet that can help people protect themselves from common financial fraud techniques.
Over the past five years more than $1 billion in tribal trust settlements have been reached, including the Keepseagle and Cobell class-action legal settlements. Many of these settlements have resulted in payments to individual tribal members, which makes them targets for fraudsters who follow a simple strategy: They go where the money is. The FINRA Investor Education Foundation is collaborating with First Nations to help reach the recipients of these trust fund settlements, as well as other tribal members who may be targeted for their wealth.
The pamphlet, titled “Fighting Fraud 101: Smart Tips for Investors,” is designed to appeal to individuals, members of tribal investment committees, and retirees. It lists some common fraud tactics, such as the “Social Consensus” tactic that lead you to believe that your savvy friends and neighbors may have already invested in a product. With the “Source Credibility” tactic, a fraudster may falsely suggest they have worked with other tribal investment committees or helped people manage lump sum payouts from tribal lawsuits to try to gain trust. The pamphlet also teaches several techniques to avoid being taken advantage of and how to report suspicious behavior.
“We are honored to be able to collaborate with several national partners, including the FINRA Investor Education Foundation and the Office of the Special Trustee for American Indians, to provide financial education for tribal members,” said First Nations President Michael Roberts.
First Nations representatives Sarah Dewees and Shawn Spruce spoke at an October 29, 2014, Federal Trade Commission event titled “Fraud Affects All Communities.” The purpose of this meeting was to highlight the range of consumer, financial and investor fraud techniques that affect diverse communities.
“A lot of people aren’t aware that financial fraud is a big problem on many Indian reservations,” said Sarah Dewees, senior director of research, policy and asset-building programs. “I am happy we have been able to continue our work with the FINRA Investor Education Foundation and the Office of the Special Trustee to help community members protect themselves against financial fraud.”
A copy of the pamphlet can be viewed in First Nations’ online Knowledge Center at http://www.firstnations.org/knowledge-center/predatory-lending/research. To order printed copies, you can email info@firstnations.org.
By Sarah Dewees, First Nations Senior Director of Research, Policy and Asset-Building Programs