Relationship Between Socioeconomic Conditions and Financial Fraud Victimization Among Older Adults in China: Do Financial Literacy and Financial Attitudes Matter?

Abstract

Using data from the 2015 wave of the China Household Finance Survey (N ≈ 12,100), this study used structural equation modeling to examine the relationship between socioeconomic conditions (i.e., educational attainments, hukou status, and household financial assets per capita) and financial fraud victimization among Chinese older adults and the mediating roles of financial literacy and financial attitudes (i.e., interest in financial matters and risk tolerance). We found that although neither educational attainment nor hukou status was directly related to financial fraud victimization, household financial assets per capita was postively associated with the risk of financial fraud victimization. In addition, higher educational attainment, urban hukou, and more financial assets per capita were associated with more risk of financial fraud victimization through higher levels of financial literacy and higher interest in financial matters. Implications for preventing and protecting Chinese older adults from financial fraud victimization are discussed.