Financial fraud is a societal problem for adults of all ages, but financial losses are especially damaging to older adults who typically live on fixed incomes and have less time to recoup losses. Persuasion tactics used by fraud perpetrators often elicit high levels of emotional arousal; thus, studying emotional arousal may help to identify the conditions under which individuals are particularly susceptible to fraud. We examined whether inducing high-arousal positive (HAP) and high-arousal negative (HAN) emotions increased susceptibility to fraud. Older (ages 65 to 85) and younger (ages 30 to 40) adults were randomly assigned to 1 of 3 emotional arousal conditions in a laboratory task: HAP, HAN, or low arousal (LA). Fraud susceptibility was assessed through participants' responses to misleading advertisements. Both HAP and HAN emotions were successfully induced in older and younger participants. For participants who exhibited the intended induced emotional arousal, both the HAP and HAN conditions, relative to the LA condition, significantly increased participants' reported intention to purchase falsely advertised items. These effects did not differ significantly between older and younger adults and were mitigated in participants who did not exhibit the intended emotional arousal. However, irrespective of the emotional arousal condition to which older adults were assigned (HAP, HAN, or LA), they reported greater purchase intention than did younger adults. These results inform the literature on fraud susceptibility and aging. Educating consumers to postpone financial decisions until they are in calm emotional states may protect against this common persuasion tactic. (PsycINFO Database Record

Millions of Americans are targeted by investment scams, resulting in billions of dollars lost each year. Previous research indicates that investment fraud victims are more likely to be male, white, and married, and to have higher socioeconomic status compared to the general US population, but little research examines what behaviors and mindsets differentiate them from other investors. A telephone survey was administered to 214 investment fraud victims and 813 general investors recruited using random digit dialing. Based on the opportunity model of predatory victimization, the aim was to identify differences in investment behaviors and psychological mindsets that may affect exposure to investment scams and make individuals more attractive and susceptible targets. In addition to being older and male, victims were more materialistic than general investors and were more frequent stock traders, and purchased more investments sold through unsolicited calls, emails, television advertisements, or “free lunch” seminars, but were less likely to invest based on a social network member’s recommendation. As more retirees begin to take on managing their retirement assets, many may be tempted by unreasonable investment returns promised by unscrupulous brokers. Findings point to specific areas where investor education is needed to counteract poor investment decision-making and risky mindsets.

Telemarketing fraud is pervasive and older consumers are disproportionally targeted. Given laboratory research showing that forewarning can effectively counter influence appeals, we conducted a field experiment to test whether forewarning could protect people who had been victimized in the past. A research assistant with prior experience as a telemarketer pitched a mock scam two or four weeks after participants were warned about the same scam or an entirely different scam. Both warnings reduced unequivocal acceptance of the mock scam although outright refusals (as opposed to expressions of skepticism) were more frequent with the same scam warning than the different scam warning. The same scam warning, but not the different scam warning, lost effectiveness over time. Findings demonstrate that social psychological research can inform effective protection strategies against telemarketing fraud.

Despite common recommendations from professionals that adoption disclosure should be done at early ages, reports suggest that a sizeable number of adult adoptees do not learn of their adoption status until older ages. The few studies that exist indicate that the late discovery of adoption is linked to psychological distress and feelings of anger, betrayal, depression, and anxiety. In this mixed-method study, 254 adult adoptees completed a survey consisting of the K10 (Kessler Distress Inventory) the World Health Organization Quality of Life Scale–BREF, open-ended prompts, and demographic items. Results indicated that those who learned of their adoptions from age 3 and older reported more distress and lower life satisfaction when controlling for the amount of time adoptees have known of their adoption statuses and their use of coping strategies. Adoptees also indicated a desire for communicative openness and reported that beneficial coping methods included supportive relationships and seeking contact with birth relatives and other adoptees.

Multi-level marketing (mlm) firms offer recruits the opportunity to earn compensation through starting their own direct selling business and often characterize mlm work as part of the “gig” economy. mlm promotes flexibility, autonomy, and income potential but data suggest that most participants fail to make money. Decisions are made under uncertainty as there is asymmetric information on potential outcomes and their respective likelihood. We use the first nationally representative survey (N = 1016) to understand the motivations for participating in mlm “gigs,” the social and financial outcomes of participation, and the correlates of those outcomes. While approximately three-fourths of mlm workers report that they joined for financial returns, a similar share reported that they did not earn any profit. Results identify a mismatch between expectations and outcomes and underscore decision biases in the context of uncertain financial rewards alongside broader gig economy regulatory concerns.