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While the holidays are known for festive cheer it's also the busiest time of year for something not so joyous: fraud.
"Scammers can rob you of hard-earned money, personal information, and, at the very least, a festive mood," warns the FBI website. And unfortunately, residents of the Beehive State seem to be more vulnerable than most.
As early as 1984 in a Washington Post article, Utah had an established and deserved reputation as the fraud capital of the U.S.
Ponzi schemes. Fake debt collections. Identity theft. Almost everyone has brushed paths with a scammer online, over the phone or even in person at some point. But why do Utahns seem to fall for their tricks so often? Here are some possible answers.
A majority of the population practices the same religion
World Population Review reports that 68.55% of Utahns are members of The Church of Jesus Christ of Latter-day Saints. And while religion itself is not to blame for the uptick in fraudulent schemes throughout the state, a dominant religion increases the risk for affinity fraud.
According to the U.S. Securities and Exchange Commission, that's when a fraudster tries to gain the trust of others by pretending to belong to a particular group.
Data from ponzitracker.com in 2019 ranks Utah No. 6 in the country for Ponzi schemes, despite being 31st in terms of population size.
"The disparate rate of Ponzi schemes in Utah is likely attributable at least in part to the state's large [Latter-day Saint] population which has been a hotbed for affinity fraud," the website states.
It's important to remember — just because someone claims to practice the same faith as you doesn't mean you should give them your money.
People are very trusting
Before you harangue Utahns for being too gullible and trusting, you should know that it's actually a mark of intelligence. One Oxford University study found that "intelligent people are more likely to trust others, while those who score lower on measures of intelligence are less likely to do so."
But that virtue becomes a vice in the hands of scammers. One of the biggest reasons why anyone falls for a scam is because fraudsters are very good at earning your trust.
"In our community, it's a positive thing to give and receive trust quickly," Ethan Millard, who works in finance and has a securities license, told KSL News Radio in 2019. "That's part of our unique cultural makeup. And that's not going away. That's where our vulnerability is."
Utahns are just too nice
You were likely taught to listen when others speak and to not interrupt. And you certainly shouldn't hang up the phone on someone. Well, if you suspect you're being swindled, you can throw those good manners out the window, according to local police.
In an August video on the Utah County Sheriff's Office Facebook page, Sgt. Spencer Cannon says it's okay to hang up on people who sound suspicious. This includes anyone who claims to be a police officer with a warrant for your arrest, which is a common scam.
"It's okay to look up the number yourself. Call to see if, in fact, you do have a warrant. You can call any police department and ask them. They'll check it for you," Cannon says.
Utah has the youngest population
You might think the elderly are the most common victims of fraud in the U.S. — but you'd be wrong. Recent findings suggest that young people fall for scams more often than older adults.
"Data shows that young people are even more likely than seniors to be hoodwinked, whether it's a fake job, product, loan, or check (usually in the form of a prize or rebate)," Sara Merkin writes for TheLadders.com.
Considering Utah has the youngest population in the country, according to Statista, that could be one explanation for why fraud happens more readily here.
The low crime rate provides a false sense of security
When you live in a state WalletHub ranks as one of the safest places in the country, it's easy to take that sense of security for granted. Unfortunately, Utahns are so used to a general sense of safety that they might not consider the rampant white-collar crime happening right under their noses.
Utahns want to do the right thing
While it may be the so-called fraud capital of the U.S., Utah remains one of the most virtuous states in the nation. On the 2022 WalletHub list of the "Most Sinful States in America," Utah was near the bottom at No. 42. Scammers prey on this morality with fraudulent charity schemes and phone scams. No, the deposed King of Nigeria does not need your help. Delete that email.
Utahns also like free things
Most people jump at the chance to score free tickets to a tropical getaway or to suddenly pad their bank account with hordes of cash. Utahns are no different. The allure of winning something for free is extremely enticing.
"When scam artists dangle the prospect of a big reward, victims can often fall deeper and deeper into the scam, even with the awareness that something feels off," Ashawnta Jackson writes for JSTOR Daily.
You've heard it said a million times, but here's another reminder: If it sounds too good to be true, it probably is.
Be crime smart
The best way to protect yourself from fraud is to be aware of it. Be leery of anything that sounds suspicious and report it to the police. For more help on how to avoid scams and fraudsters, check out the FBI webpage on Scams and Safety.
Siegfried & Jensen
Since 1990, Siegfried & Jensen have been helping the people of Utah and surrounding states who have suffered needless injuries and death caused by car accidents, truck accidents, medical malpractice, defective drugs, dog bites, wrongful death, and other types of personal injury.
The firm is committed to keeping Utah families and communities safe by making sure that wrongdoers are held accountable. While a lawsuit isn't always the answer when it is needed having someone on your side can mean the difference between declaring bankruptcy and rebuilding your life and moving forward, especially when you're up against an insurance company or a hospital.
Siegfried & Jensen has a 97% success rate with more than 35,000 cases and $1.2 billion recovered for their clients.
