We live in an age where access to financial resources and opportunities gives us a leg up in becoming wealthy. But sadly, women face a significantly higher risk of falling victim to financial theft scams compared to men.
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“Statistics show that women are often targeted due to a combination of factors, including a greater tendency to trust others and a lack of awareness about financial scams,” said Andrew Pickett, trial attorney and founder at Andrew Pickett Law. “This trust can sometimes lead to impatience in verifying offers or conducting due diligence. It’s essential to cultivate a mindset of vigilance and self-empowerment.”
Abid Salahi, finance expert and co-founder of FinlyWealth, agreed. “A 2023 Federal Trade Commission report revealed that women are 26% more likely to be targeted by financial fraudsters,” he said. “This stark disparity demands our attention and action.”
Read below to learn about some of the factors that contribute to women’s increased vulnerability to financial theft and how they can take steps to protect themselves.
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Historical Exclusion From Financial Education
According to Salahi, one big factor is that for generations, women were often left out of financial discussions and decision-making processes.
“This systemic exclusion has created a knowledge gap that persists today,” he explained. “Many women clients I’ve worked with initially express less confidence in their financial literacy, making them more susceptible to sophisticated scams.”
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The Gender Wage Gap
“According to the U.S. Bureau of Labor Statistics, as of 2024, women still earn only 82 cents for every dollar earned by men,” said Salahi.
This ongoing financial pressure, he observed, can make some women more vulnerable to fraudulent “get-rich-quick” schemes or too-good-to-be-true investment opportunities.
Targeting by Scammers
Another factor Salahi pointed out is that fraudsters often perceive women as easier targets, especially older women or those recently widowed or divorced. “[Scammers] exploit emotional vulnerabilities and life transitions to gain trust and access to finances.”
Social Engineering Tactics
One particularly insidious approach, according to Salahi, is that some scammers use gendered approaches.
In other words, they tailor their tactics to exploit stereotypes about women’s financial knowledge or decision-making processes.
Underrepresentation in Finance
“The financial services industry remains male-dominated, with women holding only 24% of senior leadership roles, according to a 2023 Deloitte report,” Salahi noted.
This lack of representation, he said, can make it harder for women to find relatable mentors or advisors they trust.
Proactive Steps Women Can Take To Protect Themselves
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Prioritize financial education: Invest time in learning about personal finance, common scams and investment basics. “Knowledge is power in the fight against financial fraud,” Salahi said.
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Be skeptical of unsolicited offers: Whether it’s an unexpected phone call, email or social media message, approach any unsolicited financial opportunity with extreme caution.
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Verify credentials: Always check the legitimacy of financial advisors, companies and investment opportunities. “Use official sources like the SEC’s Investment Adviser Public Disclosure website,” Salahi said.
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Build a trusted network: Cultivate relationships with reputable financial professionals and seek second opinions on major financial decisions.
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Use secure technology: Use strong passwords and two-factor authentication, and keep software updated on all devices used for financial transactions.
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Monitor accounts regularly: Check bank and credit card statements frequently to catch any unauthorized activity early.
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Trust your instincts: “If an offer seems too good to be true, it probably is,” said Salahi. “Don’t let pressure tactics force you into hasty decisions.”
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Report suspicious activity: Finally, Salahi suggested that if you encounter a potential scam, report it to the FTC and warn others in your community.
The Bottom Line
“At [my company], we’ve implemented a multi-layered verification process for all financial products and partners,” Salahi explained. “This rigorous approach has significantly reduced the risk of fraud for our users. I strongly advise women to adopt a similar mindset in their personal financial lives — always verify, question and seek expert advice when needed.”
Moreover, it’s crucial to note that while women may be more frequently targeted, financial literacy and vigilance are essential for everyone.
“By raising awareness and promoting education, we can work towards closing the gender gap in financial vulnerability,” Salahi said.
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This article originally appeared on GOBankingRates.com: 5 Reasons Women Are More Likely To Be Targeted for Financial Theft Scams
