Are we all potential scam victims?

The typical image of a scam victim is perhaps that of an elderly and vulnerable person. However the work of Dr Louise Hassan, a consumer psychology expert from Bangor University Business School, suggests otherwise.

The growth of the internet, a busy lifestyle and a lack of knowledge can leave us all open to scammers. Trading standards strive to protect people, yet some, who are not generally considered vulnerable, still make poor choices and fall victim to some of the most catastrophic scams.

This question was discussed at the last plenary of TSI’s Conference, and Dr Hassan made the point that it is hard to completely protect all consumers from scammers.

Shining a light on the often confusing world of consumer and scam victim psychology, Dr Hassan spoke with TSI about her work, the changing definition of a ‘vulnerable consumer’ and what can be done to protect them.

Q. What research have you conducted in the area of consumer behaviour?

A. Well, too many different things to cover them all, but in general my research focuses on understanding the personal and social factors that are important in helping consumers to avoid or to stop engaging in risky behaviour. A lot of my studies have looked at understanding smoking behaviour and what factors might lead smokers to quit. You can find out more at my website louisemhassan.co.uk.

 Q. Can you define a vulnerable consumer and is that definition changing?

A. Traditionally vulnerability is associated with demographic factors such as age and income but a more up-to-date and pertinent view is that vulnerability is a much more complex concept that might and in a lot of cases has nothing to do with age and income. Vulnerability might be situation-specific, that is, “today I’m tired and I’m in a rush and so when I’m buying a new toaster on the internet I just go for the cheapest and don’t really check out the retailer. Now, when I look back after five days and realise I wasn’t on the website that I thought I usually used and trusted.”

This example highlights that really all of us can be vulnerable and how you define vulnerability really depends very much on the context in question.  Yes, there are factors such as cognitive decline that make older people more vulnerable but that’s overly simplistic and we need to look more closely at the situation than just the person’s demographics.

Q.Why do non-vulnerable, intelligent consumers make illogical decisions and fall victim to scams?

A. Scammers are very good at what they do. They have to be otherwise they wouldn’t be in business. They come across as likable and believable people that you can trust. They employ a sales pitch that often involves tactics such as distraction, time pressure, scarcity (that you might miss out on a ‘good’ deal), amongst others. In the case of online scams, many consumers are not even aware that they have been conned until the products don’t arrive or that the product is of poor quality.  As a result it might not be an illogical decision that leads to consumers being fooled.  In fact it is more sinister than that, they are systematically fooled into making the purchase.

Dr Hassan addresses Conference

Q. Why would scammers target a consumer not typically considered vulnerable?

A. They have a well-honed craft and the confidence from previous successes to know that they can hook a victim. They might ask for small amounts of money so not to raise too much suspicion. In online scams they tend to target younger people as these are the consumers who regularly shop online and use social media.

Q. Based on your research, how do you think people should protect themselves from scammers?

A. The key to protecting yourself is to stay alert and stay in control. Don’t let invited in-home sellers wear you out for hours, ask them to leave after one hour maximum and be upfront that that is what you are going to do. Bear in mind at all times that they are trying to sell to you and that they are not your friend having a social chat.

Be vigilant when shopping online, if you haven’t shopped on a particular website before, perhaps call them, do a Google search and see if there are any complaints from previous customers.  In the case of tradespeople check to see if your local residents association have a list of local companies that have done a good job for other customers in the area.  Even better is to get personal recommendation from friends or neighbours. A useful tip is to check with trading standards for approved trader schemes.

Q. How can a community help influence consumers? Is there a degree of responsibility from carers, friends, family and neighbours?

A. Yes in the case of young and older people I do think that a good community network can help in raising the awareness of the types of scams that one can fall victim to and in making it more acceptable to talk about. Really it isn’t known exactly how many people have been victims of a scam because consumers don’t always report it. Consumers who have been a victim might be reluctant to tell others because being a victim might be perceived as being synonymous with being vulnerable.  Nobody likes to be known as a victim! It is important that people are more open to discussing the issue and in doing so this will help to educate others as to what to look out for if they have been a victim. Members of a community be they carers, friends, family and neighbours should be encouraged to bring such activities to the attention to their local residence association who can spread the word to other members of the community.

Q. Is it a new phenomenon for consumers who are not generally considered to be vulnerable to be scammed?

A. Yes, in a way it is because the internet is still relatively new with some calling it the ‘wild west’. Online scams have the potential to impact more consumers as they are cheaper to operate and can target many people at a time through email for example. Setting up a website is also relatively inexpensive and it can easily be made to look very realistic and legitimate. Therefore consumers are more at risk now than they were say 20 years ago.

Q. How do you think trading standards officers should approach consumer protection from scammers?

A. Research has found that forewarning people of a scam has a benefit in reducing the likelihood of uptake of a scam offer. However there are very few other studies that have tested interventions. There is a need for more research to be done to identify effective ways to increase consumers’ self-control and reduce susceptibility to scams.  Therefore from a scientific point-of-view leaflets that provide general advice about scams are beneficial for consumers.  However these might get forgotten when placed in the bin or in a drawer.  So designing fridge magnets, key rings or door stickers that give people concrete advice at point of use (that is when a door-to-door sales person comes calling) is the best advice currently.

The key point to remember in the case of door step/invited in-home sellers is that, nothing is so precious that a decision needs to be made straight away.  If you can’t think it over and contact then in a few days’ time then you shouldn’t agree to the purchase.  Remember, don’t be fooled into thinking in-home means friendly and social, after all it is selling (in-home or not).

Q. In your opinion, do you feel that consumers will ever be fully protected from scammers?

A. In reality the answer is no. But being alert and forewarned that you might be at risk of a scam does help.

Do you agree? Continue the discussion below in the comment section – we want to hear your views!

For more information, please contact TSI’s press office or call 01268 582214