Association of Financial Literacy and Risk Preference With Fraud Exposure and Victimization Among Middle-Aged and Older Adults in China

Shih Jen Yu, Chun Tung Kuo*, Yung Ching Tseng

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Fraud jeopardizes older people’s physical, mental, and economic well-being, and financial literacy and risk preference have been linked to the risk of fraud experience. Given the inconsistent evidence, we investigated whether financial literacy and risk preferences were associated with fraud exposure and victimization among middle-aged and older adults. We analyzed data from the 2015 China Household Finance Survey, including 22,121 participants aged 50 and older. Poisson regression models were conducted to determine the association of financial literacy and risk preference with fraud experience. We found that financial literacy and risk preference were positively associated with fraud exposure and victimization. The prevalence of fraud victimization among middle-aged and older adults with the highest financial literacy and risk preference levels was 46.5% and 45.8% higher than among those with the lowest levels, respectively. These findings suggested that basic financial knowledge is insufficient to protect older people from fraud exposure and victimization.

Original languageEnglish
Pages (from-to)89-98
Number of pages10
JournalJournal of Applied Gerontology
Volume42
Issue number1
DOIs
Publication statusPublished - 2023 Jan

Keywords

  • China Household Finance Survey
  • financial literacy
  • fraud exposure
  • fraud victimization
  • risk preferences

ASJC Scopus subject areas

  • Gerontology
  • Geriatrics and Gerontology

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