Who gets scammed? The roles of financial literacy, digital financial security, and overconfidence in Europe
Juan Rafael Ruiz · International Review of Economics & Finance · 2026
This study investigates the relationship between financial literacy, digital financial security, and the likelihood of falling victim to financial fraud in Europe. Using data from the 2023 OECD/INFE International Adult Financial Literacy Survey, we analyze the prevalence of fraud and its association with financial knowledge, digital skills, and psychological factors such as overconfidence across ten European countries. We focus on three common types of fraud: Ponzi schemes, phishing attacks, and unauthorized credit card use. Our results indicate that while traditional financial literacy does not have a significant protective effect against fraud, digital financial security is strongly associated with reduced victimization in Ponzi and phishing schemes. Additionally, individuals exhibiting overconfidence are significantly more likely to fall victim to scams. Sociodemographic analysis shows that men report higher victimization rates. Contrary to popular belief, older adults are less likely to be victims of fraud, which may reflect lower online exposure, greater caution, or underreporting.