Many Financial Fraud Victims Don’t See It Coming, Says Survey

According to people who took a survey a report called the Financial Fraud and Fraud Susceptibility in the United States, while most people have been targeted by financial scammers, nearly half of them don’t see it coming. Almost 24,000 adults in the 40 and over age group participated.

Among the survey results:

• Over 80% of respondents had been approached about taking part in what was potentially financial scam.

• 40% were unable to recognize the typical red flag signs of possible fraud.

• Over 40% found the idea of a 100% yearly investment return very attractive.

• 43% liked the idea of investments that were “fully guaranteed.”

• 11% of respondents admitted to losing money when investing in specifics scams, such as e-mail schemes or sales pitches during free lunches, but only 4% admitted to being victimized by financial fraud when they were directly asked about it.

• Just 45% of those that admitted to being a fraud victim told anyone else about it.

• The most common reasons cited for not reporting what happened were a) not knowing who to tell and b) not thinking that telling anyone would help.

• Educated, younger males with high incomes were the ones most likely to risk big in order to possibly achieve high returns.

At Shepherd Smith Edwards and Kantas, LTD, LLP, our financial fraud lawyers represent individuals and institutions that have sustained losses due to the negligence of others. We also represent senior investors, high net worth clients, and investors of mortgage-backed securities (MBS), collateralized mortgage obligations (CMOs), residential mortgage backed securities (RMBS), derivative securities (derivatives), variable annuities, auction rate securities, real estate investment trusts (REITs), non-traded REITS, credit default swaps (CDS), hedge funds, and other complex securities. Contact our securities law firm today.

Financial fraud is rampant but most people can’t spot it: Survey, Investment News, September 12, 2013

Financial Fraud and Fraud Susceptibility in the United States report, FINRA (PDF)

Frauds and Scams, FINRA

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