Findings from a Pilot Study to Measure Financial Fraud in the United States

• In Event: Measuring Financial Fraud Victimization in the United States

Abstract

Consumer financial fraud is a serious problem in our society. While researchers estimate that billions of dollars are lost to scams each year, measuring the true prevalence rate and costs of financial fraud has been hindered by a number of challenges. Therefore, the FINRA Investor Education Foundation and the Stanford Center on Longevity—working in collaboration with the Bureau of Justice Statistics (BJS) in the U.S. Department of Justice—embarked on a project to develop a standardized fraud classification system and create a survey instrument to measure the scope of the problem. The survey was tested with victims and non-victims, and administered to an online panel of 2,000 U.S. adults age 18 and older. Data was collected on the frequency and type of fraud victimization in the past year, the amount of the loss, fraud solicitation and transaction methods, perpetrator characteristics, reporting behaviors, and the emotional and financial impact of victimization. Results of the pilot study are discussed.

Authors

• Gary Mottola, FINRA Foundation

• Marguerite DeLiema, Stanford Center on Longevity

• Martha Deevy, Stanford Center on Longevity

• Christine Kieffer, FINRA Foundation