Printer-friendly version

Introduction/Survey Design & Methodology

The Alliance for Consumer Fraud Awareness is pleased to present the following findings from the Scam Benchmark Survey Topline Report. 

Booms Research & Consulting conducted 2,000 interviews via telephone with U.S. adults (18 years of age and older) between August 16, 2007 and August 20, 2007.  The survey was conducted using a Random-Digit-Dialing (RDD) and proportionate-to-probability sample stratification methodology.  This approach helps ensure the projectability and statistical reliability of the findings.  The margin of error for this study is +/- 2.2% at the 95% level of confidence.

Jason Booms, President & CEO of Booms Research & Consulting, is the author of this report.

N = 2,000 American Adults (18 years of age and older)
Field Dates = August 16, 2007 – August 20, 2007
Margin of Error = +/- 2.2% at the 95% level of confidence

Executive Summary of Key Findings

SCAM HISTORY

The typical American adult reports receiving, on average, 4.5 e-mails, telephone calls and/or pieces of mail per week that they believe might be scams trying to access their bank account or their money.  Thirty percent say they receive 10 or more such forms of communication each week.

• Thirty-five percent of all American adults indicate that they have been “approached on-line or through the mail by someone” who sent them a real-looking check and who asked them to send money somewhere in return.
• Almost one in three Americans (31%) say they have “received an unexpected inquiry from someone” they have not met in person asking them to verify their bank account information.
• Eighteen percent of the respondents acknowledged that they, or a family members has fallen victim to a financial scam. 

WHO IS VULNERABLE?

A plurality of Americans (47%) believe that “anyone” is likely to be a target of a financial scam or fake check scam. That said many Americans give a different response to that question:

• Forty-one percent think that “senior citizens” are the most likely to be the target of such scams.
• Five percent say that “anyone with a bank account” is the most likely to be a scam target.
• Another five percent choose “people who conduct transactions online such as banking or shopping” as the most likely target for a financial or fake check scam.

Most Americans (52%) disagree with the statement that “the average American can easily recognize the warning signs of a scam.”  Only 46% of American adults believe that the average American can easily recognize the warning signs of a scam, merely 17% “strongly agree.”  This indicates a considerable degree of skepticism held by many Americans regarding the ability of their fellow citizens to discern a possible scam. 

Sixty-nine percent of American adults agree with the statement that, “I, personally, could be the target of a financial scam.”  Thirty-five percent strongly agree, with 30% disagree and with the contention (22% disagree “strongly”). 

WHO IS RESPONSBILE FOR STOLEN FUNDS?

Most Americans do not know who is responsible for funds lost due to a scam. 

When asked, “If you were to deposit a check and it turned out to be counterfeit, who among the following, if any, would be responsible for any funds withdrawn or other funds lost such as the check amount or any over-drafts or returned check fees,” most Americans select a wrong answer.

• Forty-five percent say that the “fraudulent check writer who sent you the counterfeit check” would be responsible for those lost funds.  That is dangerous wishful thinking.
• Thirty-three percent give the correct response, “I, alone.”
• Eight percent say “both the bank and myself” while six percent opt for “the bank, alone.”  Four percent reply “all of the above.”

Fifty-seven percent of Americans believe (incorrectly) that their bank will “go after the fraudulent check writer to recover the funds” if they fall victim to a fake check scam.  Thirty-four percent “strongly agree” that their bank will take this action.  Thirty-eight percent disagree, which is the correct answer (22% “strongly disagree”).

Who are the scammers?

A plurality of Americans (45%) believe, erroneously, that most fraudulent check scams that target Americans originate from people living in the United States.  Thirty-seven percent respond that most fraudulent check scams of that nature originate from people living overseas.  Ten percent volunteer that the point of origin of such scams is split “about equally” between those in the United States and those from overseas.

A plurality of American adults (33%) think that “lottery winner scams” are the most prevalent fake check scams, followed by work-at-home scams (22%), foreign-business offer scams (16%), Internet love scams (14%), rental schemes or roommate wanted scams (2%), with “all of the above” (4%) and other (1%) rounding out the field.