Wharton Pension Research Council Working Papers
 

Document Type

Working Paper

Date of this Version

12-1-2018

Abstract

This is the first study to use longitudinal data to explore both the antecedents and consequences of fraud victimization in the older population. Because older persons are close to or past the peak of their wealth accumulation, they are often the targets of fraud. This paper reports on analysis of the Leave Behind Questionnaires (LBQs) fielded on Health and Retirement Study (HRS) respondents over three survey waves in 2008, 2010, and 2012. We evaluate the demographic determinants and risk factors of reporting financial fraud victimization in the survey, and explore whether there are demographic subgroups of older victims. In addition, we examine the financial, physical and psychological consequences of fraud. Overall results suggest that there is no single reliable predictor of fraud victimization across all three LBQ samples. When LBQ responses were pooled across survey years, we found that younger, male, better-educated, and depressed persons reported being defrauded significantly more often. Victimization was associated with lower non-housing wealth in the combined sample controlling for other factors, but had no measurable impact on cognitive, psychological, or physical health outcomes. Future research should examine predictors and outcomes based on the type of financial fraud experienced and the amount of money lost.

Comments

The project received funding pursuant to a grant from the U.S. Social Security Administration (SSA) funded as part of the Retirement Research Consortium, and research support from the TIAA Institute. Opinions and conclusions expressed are solely those of the authors and do not represent the opinions or policy of SSA or any agency of the Federal Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of the contents of this report. Findings and conclusions expressed do not necessarily represent official views of the TIAA Institute or TIAA. Additionally, any reference herein to any specific commercial product, process or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply endorsement, recommendation or favoring by the United States Government or any agency thereof. The Pension Research Council/Boettner Center at the Wharton School of the University of Pennsylvania also provided research support.

Working Paper Number

WP-2018-06

Copyright/Permission Statement

Opinions and conclusions expressed herein are solely those of the authors and do not represent the opinions or policy of the funders or any other institutions with which the authors are affiliated. ©2018 DeLiema, Deevy, Lusardi, and Mitchell. All rights reserved.

Acknowledgements

The authors thank Yong Yu for expert programming and research assistance.

Included in

Economics Commons

Share

COinS
 

Date Posted: 06 February 2019