Will you be a scam artist’s next target?

Tips to reduce your exposure to potential scams

BBy Liz Weston

elieving that fraud can’t happen to us – because we’re too smart, logical or informed – may make us more vulnerable. Successful scam artists skillfully overcome our defenses and get us into emotional states that override logical thinking, says Kathy Stokes, AARP’s director of fraud prevention programs.

“Scammers call it getting the victim under the ether,” she says.

Various studies have tried to identify characteristics that make people more susceptible to fraud. But that can create a “blame the victim” mentality and give the rest of us a false sense of security, she says.

“I’d say the majority of people are unwittingly deceived through no other reason than the criminals are good at what they do,” Stokes says.

Research is mixed on whether older people are more likely to be defrauded than younger ones. One thing is certain, though: Older people are more likely to have money. People 50 and older control 83% of the wealth in the US.

One way to protect that money is to cut down on our exposure to sales pitches, fraud experts say. AARP studies have found investment fraud victims were more likely than other investors to respond to sales pitches delivered by phone, email or television. They also were more likely to send away for free promotional materials, enter drawings, attend free lunch seminars and read all their mail, including advertisements.

To reduce your exposure to potential scams, consider the following steps:

Put yourself on the federal Do Not Call list.

Sign up for a telephone call blocking system, such as NoMoRobo, and let unknown callers go to voicemail.

If you give out personal information, be sure you know who you are giving it to, and why they need it.

Don’t make investment decisions based solely on a phone or email pitch or an ad.

Overconfidence can lead people to trade too aggressively (convinced that they can beat the market), put off saving for retirement (convinced they can catch up later) and ignore warning signs of fraud (convinced that they can’t be victimized).

The risk may increase with age. Studies have found that our financial decision-making abilities peak by our early 50s and decline,