we know that many kūpuna and families dream of earning extra income during retirement. Unfortunately, scammers often exploit these hopes with false promises of “easy money” through so-called passive income opportunities.
Here’s what you need to know to stay safe and protect yourself from passive income fraud.
Passive income is money earned with little ongoing effort, such as earnings from:
Investments
Rental properties
High-yield savings accounts
Creating content like eBooks or online courses
While there are legitimate ways to earn passive income, many opportunities require significant time, money, and risk — and scammers know this.
1. Ponzi Schemes:
Scammers promise high returns but actually use your money to pay earlier investors, while keeping much of it themselves.
2. Pyramid Schemes:
Instead of selling a real product, you’re pushed to recruit others. Earnings depend on enrolling more people, and eventually the scheme collapses.
3. “Blessing Looms” and “Sou-Sous”:
These schemes are disguised as community lending circles but operate like illegal pyramid schemes, leaving latecomers with nothing.
4. Fake Courses and Memberships:
Some scammers sell overpriced courses promising passive income success, but they make money from selling the courses — not from real investments.
Be skeptical of “easy money” offers.
If it sounds too good to be true, it probably is.
Avoid high-pressure tactics.
Scammers create urgency to prevent you from thinking it through.
Verify businesses and individuals.
Search for company names plus “scam” reviews online.
Confirm licensing and registration.
Investment sellers should be registered with the proper authorities.
Take your time.
Sleep on it and ask trusted friends or family members for advice before investing.
Report scams to the Federal Trade Commission (FTC) at reportfraud.ftc.gov.
File complaints with the FBI’s Internet Crime Complaint Center at ic3.gov.
Contact SMP Hawaii for free, confidential help if you’ve shared your Medicare number or personal details.
📞 Call: 1-800-296-9422
📧 Email: info@smphawaii.org
🌐 Visit: www.smphawaii.org
Stay informed. Stay cautious. Stay protected. Together, we can protect Hawaii’s kūpuna and ohana from financial fraud.
