According to the AARP Investment Fraud Vulnerability Study, published by the AARP Fraud Watch Network, active, older investors who get involved in unregulated investments may be more vulnerable to investment fraud. 214 fraud victims were interviewed, along with 814 members of the public who are considered general investors.
The study said that there are appear to be certain traits that may identify why some people are more likely to become fraud victims, including:
· Usually men, age 70 or older.
· These men are often risk-takers.
· They’re more likely to value wealth accumulation as a sign of financial success.
· They’re typically open to sales pitches and to answering remote sales pitches.
Doug Shadel, the lead researcher for the AARP Fraud Network, noted that if an older investor is able to identify whether/not she has a predisposition toward risky conduct, this could make the person more mindful of that tendency and he/she might potentially avoid becoming vulnerable to fraud.