The effect of risk-taking behavior on personal fraud victimization

This is a study of risk-taking behavior and personal fraud victimization. Victimology theory is extended to fraud victims, a type of crime victim that has been largely ignored. The effects of risk-taking behavior on vulnerability to fraud are analyzed. It is predicted that the greater a person's willingness to take financial risks the greater the likelihood that he or she will be a victim of fraud. In contrast to these "risky people", prudent people, those who take few risks with their money and who try to manage their finances carefully, will be less likely to be victims of personal fraud. Data gathered via a random sample telephone survey are analyzed. Results show that risk-taking behavior and prudence effect personal fraud victimization differently. Logistic regression shows that prudent persons are less likely to be victimized in personal fraud cases. This relationship remains significant independent of several control variables.