Most financial fraud victims share specific character traits: AARP survey

Investors most susceptible to fraud typically exhibit an unusually high degree of confidence in unregulated investments and tend to trade more actively than the general investor population, according to survey results from AARP.

More of the investment scam victims also reported that they value wealth accumulation as a significant measure of success in life and acknowledged being open to unsolicited telephone and email sales pitches, the organization said in a release.

Based on the survey findings, the AARP Fraud Watch Network has launched a campaign that warns consumers about the inclinations and activities common to investment fraud victims and helps them adjust their behavior.

Unlike most investors, those prone to becoming fraud victims reported valuing wealth accumulation as a measure of success in life, being open to sales pitches, being willing to take risks and describing themselves as ideologically conservative. They also said they frequently receive phone calls and emails from brokers, make five or more investment decisions a year, and respond to remote sales pitches by phone, email or TV commercials. Most are older, male, married and military veterans.

The survey of fraud victims involved 214 telephone interviews; 600 other interviews were conducted among other investors.

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