OFFICE OF FAIR
TRADING News Release (54/09) issued by COI News Distribution Service
on 17 May 2009
The psychological
reasons consumers may fall victim to mass marketed scams are
revealed today in groundbreaking OFT research
The research, undertaken by The University of Exeter on behalf of
the OFT, provides a valuable insight into why consumers fall
victim to scams, as well as the psychological techniques used by
scammers to con the UK public out of an estimated £3.5 billion
every year.
Some of the key findings about victims of scams are that:
* up to 20% of the UK population could be particularly vulnerable
to scams, with previous victims of a scam consistently more likely
to show interest in responding again,
* a good background knowledge of the subject of a scam offer,
such as experience of investments, may actually increase the risk
of becoming a victim through 'over-confidence',
* victims are not in general poor-decision makers, for example
they may have successful business or professional careers, but
tend to be unduly open to persuasion by others and less able to
control their emotions,
* victims often keep their decision to respond to a scam offer
private and avoid speaking about it with family or friends.
The research also found that many scams use a range of highly
persuasive techniques. A common tactic is to seek to exploit basic
human emotions such as excitement or fear to provoke a spontaneous
'gut reaction' to the scam offer. Such scams also abuse
people's trust of authority by making a scam look like a
legitimate offer from a reputable business or official institution.
The research findings will help to inform the joint OFT and
Serious Organised Crime Agency's National Strategy for
tackling mass marketed fraud, in particular in developing more
effective consumer awareness campaigns to help consumers recognise
and resist scams.
Mike Haley OFT Director of Consumer Protection
said:
'This research provides valuable insight into the
sophisticated, heartless and calculating psychological techniques
used by scammers to exploit consumers. Scams often have a
devastating emotional as well as financial impact on victims. This
research will help us to develop more effective methods to counter
the scammers.'
Gareth Thomas, Consumer Minister, said:
'These findings
show it is not just the vulnerable but the financially savvy too
who are at real risk of falling victim to scammers.
Trading
Standards Scambuster teams are working hard to highlight the
dangers of scams across the country. They have already saved
consumers more than £3 million and seized £2 million in criminal assets.'
The report can be downloaded at http://www.oft.gov.uk
NOTES
1. The research, commissioned by the OFT, was conducted by the
University of Exeter School of Psychology. It involved four
studies: in-depth interviews with 25 scam victims and 5
'near' victims, the text mining of nearly 600 scam
mailings, emails and web pages to identify key psychological
triggers, the use of questionnaires and a behavioural experiment
in which 10,000 fake prize draw scam mailings (together with a
questionnaire) were sent to consumers to test their responses.
2. The research includes profiles of 10 different types of mass
marketed scam: advance fee ('419') scams, international
sweepstake scams, fake clairvoyants, prize draw pitch scams,
'get rich quick' scams, bogus investment scams, bogus
lottery scams, 'miracle' health cures, premium rate
prize draw scams, and bogus racing tipsters.
3. Scams are an OFT priority. In September 2005 the OFT launched
the Scambusters Team and set up the Scams Enforcement Group with
partner organisations focussing on law enforcement; consumer
education; and cooperation with private sector businesses to
disrupt scammers' routes to market. The OFT also runs a Scams
Awareness Month every February with national and international partners.
4. The OFT and Serious Organised Crime Agency are developing a
National Strategy for tackling mass marketed fraud, in partnership
with a wide range of other enforcement, consumer and industry
bodies. This strategy forms part of the Government's wider
National Fraud Strategy which was launched in April.
5. OFT research carried out in 2006 estimated that 3.2 million
adults in the UK (around 1 in 15 people) collectively lose around
£3.5 billion to mass marketed scams each year. This equates to
about £70 per annum for each adult living in the UK. About half
the adult population is likely to have been targeted by a scam.