Research shows 20% are vulnerable to scams

21/05/2009

Financially savvy people are more likely to fall victim to con artists, according to a major new study from the Office of Fair Trading (OFT).
The research, which was put together by academics at the University of Exeter, shows that "good background knowledge" in the subject can actually increase - rather than reduce - vulnerability.

For example, someone who knows about investments could suffer from "over-confidence" and be more easily drawn in by a conman touting a shares-based scam.

The OFT also said that people who had fallen victim to a con were more likely to fall for one again - and that 20 per cent of the population remain "particularly vulnerable" to the frauds.

Mike Haley, OFT director of consumer protection, said: "This research provides valuable insight into the sophisticated, heartless and calculating psychological techniques used by scammers to exploit consumers.

"Scams often have a devastating emotional as well as financial impact on victims. This research will help us to develop more effective methods to counter the scammers."

Around £3.5 billion is conned out of UK consumers each year, figures cited by the OFT suggest.

Tags; Current UK Economy, Recent Graduate Debt, Young Family Finances, Retirement Money Problems,

Regional Debt Advice; Debt Advice Exeter,

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