Feb 3, 2023 09:54 AM
https://theconversation.com/scammed-why-...ink-198268
EXCERPT: . . . The stereotypical image of fraud victims is that they are naïve and older. Data on fraud victims presents a very different picture, however, one that is far more nuanced. Depending on the type of fraud that researchers examine, it’s clear that sophisticated, well-educated and young people are all vulnerable to scams. Fraudsters often target a particular demographic – the well-off and well-known are targeted with scams bespoke to them.
Research has also found that overconfidence is an important factor in fraud vulnerability. People who are high achievers in one domain (for example, military expertise) may overestimate their ability to perform due diligence in a separate field (medical lab equipment). This could, for example, help explain how Bernie Madoff was able to scam wealthy, well-educated professional people who are not necessarily financial experts.
In our research, we have found that people often feel confident in their ability to detect a scam. In a series of experiments that investigated why people engage with materials that are obviously scams – such as letters apparently notifying the person of lottery winnings – we found a subgroup of people who said such letters were probably a scam but would contact the scammers to see for sure, then still back out without any losses... (MORE - missing details)
EXCERPT: . . . The stereotypical image of fraud victims is that they are naïve and older. Data on fraud victims presents a very different picture, however, one that is far more nuanced. Depending on the type of fraud that researchers examine, it’s clear that sophisticated, well-educated and young people are all vulnerable to scams. Fraudsters often target a particular demographic – the well-off and well-known are targeted with scams bespoke to them.
Research has also found that overconfidence is an important factor in fraud vulnerability. People who are high achievers in one domain (for example, military expertise) may overestimate their ability to perform due diligence in a separate field (medical lab equipment). This could, for example, help explain how Bernie Madoff was able to scam wealthy, well-educated professional people who are not necessarily financial experts.
In our research, we have found that people often feel confident in their ability to detect a scam. In a series of experiments that investigated why people engage with materials that are obviously scams – such as letters apparently notifying the person of lottery winnings – we found a subgroup of people who said such letters were probably a scam but would contact the scammers to see for sure, then still back out without any losses... (MORE - missing details)