Prof. Emeritus Michael Ross in media with findings on fraud and seniors’ risk aversion

Thursday, March 13, 2014

head shot of Mike Ross
Retired professor, Michael Ross, a social psychologist, was in the news this week with his surprising findings that challenge assumptions about seniors as most vulnerable to fraud or online scams.

Here is an excerpt from the National Post story, Middle-aged people actually more likely to fall victim to con artists than ‘risk averse’ senior citizens, study says:

As Canada’s fraud awareness month began last week, the first featured theme was “scams targeting seniors,” typical of a widespread notion that older people are the most susceptible among us to consumer swindlers.

A surprising new study to be presented at a conference this week, however, shatters that idea, suggesting, if anything, that senior citizens may be less likely than people in other age groups to fall victim to con artists.

Data from large U.S. surveys and registries of fraud complaints indicate the percentage of victims peaks in late middle age, then declines as people get older, concluded the research spearheaded by Michael Ross, a University of Waterloo social psychologist.

Some scientists have theorized that memory loss and other cognitive deficits common to aging make seniors more vulnerable to being defrauded. It is possible, however, that those neurological weaknesses are counteracted by something more mundane: the fact the elderly are simply more “risk averse,” said Prof. Ross.

“As people age their goal orientation changes from trying to maximize gains, to trying to minimize losses,” he said. “They spend less money, and they’re more careful about spending their money.” […]

Read the full story in the National Post.