The Effects of Risky Behaviors and Social Factors on the Frequency of Fraud Victimization Among Known Victims

Routine activity theory (RAT) asserts that a suitable target's exposure to a motivated offender in the absence of capable guardians increases their likelihood of crime victimization. We use these principles to assess the extent to which engaging in risky routine activities-for example, entering sweepstakes drawings, answering unknown calls-is associated with victimization frequency among older adult mass marketing fraud victims across five types of scams: investment fraud, sweepstakes and lottery fraud, romance and family/friend imposter scams, fake products and services, and charity scams. We also examine whether financial and social vulnerability characteristics (loneliness, preference for taking financial risks, financial fragility) are associated with victimization frequency in older adults.

A survey was administered to households that the U.S. Postal Inspection Service identified as having recently responded to one or more mail scam solicitations. Respondents answered questions on their behaviors, financial risk preferences, social and demographic characteristics, and number of past-year victimization experiences with 5 types of fraud.

As predicted based on RAT, routine activities that increase a target's exposure to motivated offenders are positively associated with fraud victimization frequency, although more frequent online activity was negatively associated with victimization frequency contrary to hypotheses. Precarious financial and emotional states such as financial fragility and loneliness also were associated with greater victimization frequency, and more frequent social engagement and living with others (the presence of capable guardians) had no effect.

Target suitability factors such as loneliness, financial fragility, and risky financial preferences and behaviors are associated with a higher frequency of fraud victimization among older adults. Consumer education should include information on reducing risky behaviors that can increase fraud exposure. More frequent social engagement may not be protective. Older adults who are financially fragile and experiencing loneliness require more safeguards.