Most consumers face fraud attempts, and many people are gullible, poll finds

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Posted: Friday, September 13, 2013 12:00 am

Financial fraud is widespread in America, a new poll says, with more than 80 percent respondents saying they’ve been targeted by scammers in one form or another.

Though most people don’t respond to bogus investment pitches, 11 percent have lost “significant” amounts of money in scams, according to the survey by the Financial Industry Regulatory Authority, a Wall Street industry watchdog.

The poll also indicates that many Americans are gullible. More than 40 percent people surveyed had trouble deciphering classic warning signs of financial fraud, such as promises of unrealistically large investment returns.

Elderly people are particularly vulnerable, FINRA said, both to being targeted and to falling prey and losing money.

“When it comes to financial fraud, America is a nation at risk,” said Gerri Walsh, president of FINRA’s investor education foundation. “Fraudsters are very effective at reaching and enticing vulnerable populations into turning over their money, and far too few Americans are able to detect likely fraudulent sales pitches.”

The poll of 2,364 Americans age 40 and older suggests that millions of Americans have been solicited as potential victims, often through emails offering prodigious but unrealistic riches.

The survey found that 64 percent of people had been invited to an “educational” investment seminar that probably was a sales pitch.

And 67 percent reported receiving an email from another country offering a large amount of money in exchange for an initial deposit or fee. In other words, the Nigerian prince offering a small fortune for shepherding his money to the U.S. is probably a scam.

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