Understanding Financial Exploitation Among Older Adults: The Role of Financial Skills, Scam Susceptibility, and Demographic Factors

Financial exploitation (FE) is a significant concern for older adults, with annual prevalence rates estimated between 5% and 17%. This study investigates how financial skills, specifically objective numeracy and financial knowledge, relate to scam susceptibility and FE in 672 adults aged 60 and older. Structural equation modeling revealed that higher financial knowledge and numeracy scores were significantly associated with reduced scam susceptibility, which, in turn, was linked to a lower likelihood of experiencing FE. Notably, gender, age, race, education, and income had differential impacts on financial skills and scam susceptibility. Males and minority groups, particularly African American and Hispanic participants, showed higher scam susceptibility, partially mediated by lower numeracy and financial knowledge. Education emerged as a critical protective factor, both directly and through its positive influence on financial skills. These findings underscore the importance of targeted interventions to bolster financial skills among older adults, especially vulnerable groups, to reduce FE risk. The study highlights the need for tailored educational resources and support programs to protect older adults, with particular attention to enhancing numeracy and financial knowledge across diverse demographic groups.