The Causes and Consequences of Financial Fraud Among Older Americans

Boston College Center for Retirement Research WP 2014-13

29 Pages Posted: 14 Nov 2014

See all articles by Keith Jacks Gamble

Keith Jacks Gamble

Middle Tennessee State University

Patricia Boyle

Rush University - Rush University Medical Center

Lei Yu

Rush University Medical Center - Rush Alzheimer’s Disease Center

David Bennett

Rush University - Rush University Medical Center

Date Written: November 2014

Abstract

Financial fraud is a major threat to older Americans, and this problem is expected to grow as the baby boom generation retires and more retirees manage their own retirement accounts. We use a unique dataset to examine the causes and consequences of financial fraud among older Americans. First, we find that decreasing cognition is associated with higher scam susceptibility scores and is predictive of fraud victimization. Second, overconfidence in one’s financial knowledge is associated with fraud victimization. Third, fraud victims increase their willingness to take financial risks relative to propensity-matched non-victims.

Keywords: financial fraud, frad victimization

Suggested Citation

Gamble, Keith Jacks and Boyle, Patricia and Yu, Lei and Bennett, David, The Causes and Consequences of Financial Fraud Among Older Americans (November 2014). Boston College Center for Retirement Research WP 2014-13, Available at SSRN: https://ssrn.com/abstract=2523428 or http://dx.doi.org/10.2139/ssrn.2523428

Keith Jacks Gamble (Contact Author)

Middle Tennessee State University ( email )

MTSU Box 27
Murfreesboro, TN 37129
United States

Patricia Boyle

Rush University - Rush University Medical Center ( email )

Health Systems Management
1700 West Van Buren Street, TOB Suite 126B
Chicago, IL 60612
United States

Lei Yu

Rush University Medical Center - Rush Alzheimer’s Disease Center ( email )

1700 West Van Buren Street, TOB Suite 126B
Chicago, IL 60611
United States

David Bennett

Rush University - Rush University Medical Center ( email )

Health Systems Management
1700 West Van Buren Street, TOB Suite 126B
Chicago, IL 60612
United States

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