Fraud, scams, swindles and schemes—the con is one of the oldest games in the book. And while the players and their solicitation methods have evolved, most persuasion tactics have not. In fact, consumer financial fraud may be more common today thanks to advances in technology that make
it easier for con artists to interact with thousands of unsuspecting marks at the same time through email and robodialing methods. The ever-increasing complexity of our financial markets also provide new opportunities for fraudsters to trick unwary consumers.
This brief provides a breakdown of financial fraud, including popular types of scams, common methods of solicitation, the demographic and psychological profiles of victims and perpetrators, and the cost and consequences of fraud on victims and society.