The Financial Industry Regulatory Agency has teamed up with Stanford University's Center on Longevity to launch the new online Research Center on the Prevention of Financial Fraud.
Explaining the need for the Center, FINRA wrote: "Financial fraud, ranging from Ponzi schemes to online phishing scams and work from home schemes, swindles Americans out of billions of dollars each year. While emerging technologies continue to fuel the expansion and reach of financial fraud, this joint initiative will support and consolidate scientific research and connect this research to practical prevention and detection efforts."
The Research Center's goal is to serve as an interdisciplinary resource for law enforcement, government and research groups studying financial fraud in an effort to further investor education and protection. The Center also will act as a clearinghouse for news and research about financial fraud. Visitors to the website will find an overview of financial fraud, along with "fraud facts," and featured research and news articles.
Stanford faculty in psychology, economics, and business will work with FINRA officials, the SEC, and other organizations to promote and establish research that answers the following questions:
- Who is most susceptible to financial fraud?
- How can people be effectively protected against fraud?
- What techniques do fraudsters use to persuade victims?
- Why do people fall victim to fraud? and
- What is the economic and emotional impact of fraud in the U.S.?
"By providing a comprehensive source of information for researchers, advocates, and law enforcement agents, as well as facilitating further interdisciplinary research, the Research Center hopes to contribute to the fight against financial fraud," says the Center on its website. "The financial security of all Americans depends on their ability to protect their savings and investments for the future."