New Research Shows Low Financial Literacy, Social Isolation Increase Scam Risk

New fraud research shows that people who live alone or have low financial literacy levels are more like to lose money to fraudsters. The research also shows that the highest engagement and victimization rates involve online purchases and social media—outpacing telephone, mail and email fraud. The report, “Exposed to Scams: What Separates Victims from Non-Victims,” comes from the BBB Institute for Marketplace Trust, the FINRA Investor Education Foundation, and the Stamford Center on Longevity. During the study, researchers surveyed more than 1,000 Americans and Canadians who were targeted by scammers and reported the fraud to the Better Business Bureau via BBB Scam Tracker. Nearly half of those surveyed did not engage with the fraudster. However, nearly a quarter did, losing an average of $600.