Financially Savvy More Likely to Fall for Scams; Are You Next?

Source: AARP.org |  | June 19, 2007

Think you're too smart to fall for a scam?

That's just what the cons are counting on.

According to a new AARP report, "Stolen Futures," Washington investors may be sitting ducks for con artists hawking bogus investment deals.

The survey revealed that Washington investors flunked a standard battery of financial literacy questions, scoring just over 50 percent. However, victims of investment fraud actually scored higher than non-victims.

The survey also found that investment fraud victims do not fit generally accepted stereotypes. Victims are more likely to be male, married, employed and are on average about 55 years old. Investment fraud victims are also more likely to respond to persuasion tactics typically used by con artists.

AARP and the Washington State Department of Financial Institutions (DFI) are working together on a unique consumer education campaign, which combines new material on con artists' tactics with more traditional consumer protection information.

"Teaching consumers about financial literacy without including persuasion tactics is like helping poker players understand the difference between a straight and a flush without telling them anything about bluffing," says AARP State Director Doug Shadel. "We're tearing a page directly out of the con artist's playbook in an effort to better protect consumers."

To learn how to protect yourself and the people you care about, order a free copy of AARP's "Invest wise" booklet and the DVD, "Stolen Futures." The booklet and DVD include tips and information on wise and safe investing. To order your free copies, fill out our online form, or call the AARP Fraud Fighter Call Center toll-free at 1-800-646-2283.

More information about wise and safe investing is also available on DFI's Web site.