A new study shows that Hawai'i residents 50 or older are concerned about becoming a victim of investment fraud and that one-quarter of them has suffered from or known someone who has suffered from fraud.

Those are among the findings of a new study by AARP, which says more than eight in 10 of its members favor strengthening fraud regulations and imposing stiffer penalties on criminals targeting older adults with investment fraud.

"What they're saying is that they're quite concerned about the savings environment," said Stuart Ho, chairman of AARP Hawai'i, the local branch of the national organization for seniors.

"There's a lot of interesting stuff in there."

The study, conducted in December by Richmond, Va.-based Alan Newman Research, surveyed 700 AARP Hawai'i members on savings and investing practices as well as their concerns. AARP Hawai'i said it plans to study the results and may use it as the basis of proposing legislation in the future.

The report quantifies what consumer protection advocates and others have long known: Hawai'i's older citizens sometimes are too trusting and fall prey to financial scams. Hawai'i ranked seventh last year in terms of consumer fraud complaints filed with the Federal Trade Commission. The FTC report last month said there were 157.1 complaints per 100,000 Hawai'i residents.

The AARP study found that about two-thirds of older adult residents here invest in stocks, bonds or mutual funds and that half of those people use this money primarily for retirement.

But at the same time, about half said they believe fraud by people in the investment industry was increasing. More than one in four said they knew of or had been a victim of identity theft.

Moreover, about one-quarter of people who invested said they had been approached by someone about buying variable annuities and had bought the product. Annuities can help shield savings from taxes and provide investors with regular payments.

But while annuities are a legitimate investment vehicle, there have been complaints they've sometimes been sold improperly to people who are too old to benefit from them or who may face stiff early withdrawal penalties if they need the money for medical care or other emergencies.

The AARP also found people need to better educate themselves and get a better idea of their investment adviser's background. It found that 46 percent get advice from a broker.

But 7 in 10 respondents admitted they had never checked the background of a stock broker, financial planner or investment adviser.

Ho said it appeared people didn't have an idea of whom to turn to for sound investment advice.

"They need a predictable savings and investment environment that includes better information about who they rely upon in getting their advice and making sure their personal information is safeguarded," Ho said. "We're urging our members to take a careful look at who they invest with."

The survey found that 27 percent of people weren't sure whom to ask about the legitimacy of an investment opportunity. Only 13 percent said they would call the Department of Commerce and Consumer Affairs, while 16 percent said they would approach the Better Business Bureau.

AARP Hawai'i, which has 152,0000 members, said the survey carries a margin of error of plus or minus 3.7 percent.

"Our people are telling us they're worried about a lot of things," Ho said. "It's a signal to us that we need to be more proactive in their interest."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.