Eleven percent of the nearly 2,400 U.S. adults age 40 and older who were surveyed said they had lost a significant amount of money after falling for an offer, according to FINRA Investor Education Foundation. (ISTOCK)
A new report from an investor education foundation says more than 80 percent of survey respondents said they had been solicited to participate in potentially fraudulent schemes, but less than half could identify classic red flags of fraud.
Eleven percent of the nearly 2,400 U.S. adults age 40 and older who were surveyed said they had lost a significant amount of money after falling for an offer, according to FINRA Investor Education Foundation.
Yet, a large share appeared willing to jump at the chance of reaping benefits that sounded too good to be true. “More than 4 in 10 respondents found an annual return of 110 percent for an investment appealing, and 43 percent found "fully guaranteed" investments to be appealing,” the study found.
Scams, such as investment schemes, usually come with guarantees of unrealistic returns. The study said Americans 65 and older are usually the preferred targets and is the group more likely to lose money.
The organization suspects a great deal of underreporting when it comes to consumers’ admitting they have been the victims of a potentially fraudulent scheme.
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