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Fraud, Debt Levels & Educational Attainment

By choofnagle on November 7, 2007.

I'm continuing to bore you with the Federal Trade Commission's report on Consumer Fraud in the United States.

Would it be surprising to hear that individuals with higher levels of debt are more likely to be victims of fraud?

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Yes, people in debt can be desperate, and thus be more likely to fall for scams, but there is another reason--people in debt are highly targeted by listbrokers (companies that sell lists of consumers). DirectMag's Listfinder has over 400 lists of debtors for sale. Scammers can buy these lists and target these populations for their frauds.

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The good news is that, generally, educational attainment reduces the risk of falling victim to a consumer scam, but not by much.

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Related post: Could Scientific Thinking Help Curb Consumer Fraud?

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The good news is that, generally, educational attainment reduces the risk of falling victim to a consumer scam, but not by much.

I'd like to think that being nuttily paranoid and generally distrustful of even legal usury that charges 30% penalty interest is a good start.

Granted, the 30% interest rate penalties are legal, but credit cards given out like candy to dumb*ss college students has got to be messing with your numbers regarding the educated chumps.

Now, we all think that a college education is incredibly important, but the debt incurred and the subsequent payback (promises and expectations of job, wealth), can certainly make it seem that the advertising/promises are just one step away from being as truthful as Enzyte Bob.

Go to college. Enlarge your penis. Make lots of money. Get a trophy wife/mate. Get your credit card and a slice of free pizza with it!

I'm just saying that the educational institutions have a fairly cavalier "buyer beware" attitude about them in all these things designed to make you take on loans so they can get a piece of the vig, be it college loans, or credit card shills, and it makes it easier because it panders to the supposed smarts of the student body.

To the assorted chumps on campus dragging down your stats: Surely, with your superior intellect and drive, you can manage this trivial CC debt and treat it as an investment in your future. Why, you'll be making six figure salaries to START. Aren't you worth it?