We all know that saying "if it sounds too good to be true, it probably is." But a new survey finds that taking that advice is easier said than done.
A new survey finds that eight in ten of us are frequently hit with potentially fraudulent offers.
The number of people who admit to falling for it is likely much smaller than the number who actually are victims.
One review found fraud costs Americans more than 50 billion dollars a year. So the Finra Investor Education Foundation surveyed 2000 Americans to try to find out why so many people fall victim.
Here's what they found: many Americans can't identify the red flags of fraud. More than four out of ten thought an annual return of 110 percent sounded appealing, though that's a highly improbably promise and 43 percent liked the idea of "fully guaranteed" investments, that's a line made more for fraudsters than reality.
Americans, 65-years-old and older are the most likely to be targets of fraud and men more likely than women.
The kinds of scams that catch people may sound familiar: like emails from abroad, penny stocks, and winning a lottery somewhere, but experts say the scammers are also looking for new storylines from the headlines: like claiming to have access to private shares of big companies about to go public or oil and gas scams.
The survey found income level tended to impact how people responded to scam offers. People making less than 25 thousand dollars a year were less likely to be interested in risky pitches than people who made more money. Those who made 100 thousand dollars or more were the most likely to find those pitches appealing.