This study was conducted with the help of the AARP Foundation and through a grant given to the WISE Senior Services. AARP had over 600 undercover audiotapes from 12 different law enforcement agencies that were used for the study. WISE has worked in the “area of consumer fraud and has operated the “Telemarketing Victim Call Center” since 1998.”
Interviews were done with “150 randomly selected non-victims of investment and lottery fraud and 165 victims of investment and lottery fraud.” Each of the victims of fraud were verified to have lost between $1,000 to over $1 million.
Here is a summary of some of the key findings:
- Investment fraud victims are more financially literate than non-victims;
- Investment fraud criminals use a wide array of different influence tactics—from friendship to fear and intimidation tactics—to defraud the victim;
- Fraud pitches are tailored to match the psychological needs of the victim;
- Investment fraud victims are more likely to listen to sales pitches;
- Investment fraud victims are more likely to rely on their own experience and knowledge when making investment decisions;
- Fraud victims experience more difficulties from negative life events than non-victims;
- Investment fraud victims are more optimistic about the future;
- Investment fraud and lottery victims dramatically under-report fraud.
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