Multiple studies from 2006 and 2007, conducted by AARP and Finra reveal that contrary to popular belief, scam victims are not necessarily older, uneducated people.
The fraud victims actually tend to be well educated with higher incomes. They've been investing for a greater period of time, often more than a decade.
According to the study, the typical fraud victim is an optimistic married man in his late 50s. He feels he has a higher than average knowledge on financial matters.
Scam artists use many different tactics to appeal to this crowd, but there are some ways to recognize them and prevent you from getting into a scam.
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Scam-a-ramma
John Henry McDonald shares advice for how to avoid scams.
 
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People are very good at rationalizing mistakes. Scam victims the studies identify truly believe because they are not stupid people, their actions have to be wise.
Con artists appeal to victims who wish to add money for various causes. Fraudulent charities try to target insecurities and vulnerabilities. They are not necessarily smarter than their victims, but they are more observant of human nature.
They appeal to human emotion rather than logic and seem to be able to zero in on weaknesses.
Con artists try to control the conversation by talking fast, using exciting statements and promising big returns.
The more questions you ask, the better off you'll be. By demanding specific answers to questions, people tended to be less vulnerable.
Whether young or old, focusing on positives of a purchase makes it hard to remember the negatives, so always look for the negatives, the cons, so you'll never be conned.
To read more about the study from the Wall Street Journal, click here
