Abstract

There is growing interest in using AI for financial advice, yet fraud and related financial losses remain widespread. While previous research has examined fraud victimization in general, there has been less focus on the losses resulting from fraud. Additionally, there is a limited understanding of whether individuals’ willingness to use AI for financial advice is linked to these losses. This study utilizes data from the 2024 National Financial Capability Study (NFCS) and is grounded in Routine Activity Theory and Bounded Rationality. It examines the relationship between the willingness to use AI for financial advice and the likelihood of experiencing loss due to fraud. Furthermore, the study examines the moderating effect of financial knowledge miscalibration (overconfidence). Results from multivariate logistic regression models indicate a statistically significant interaction between the willingness to use AI and financial knowledge miscalibration. Specifically, overconfidence was positively associated with the likelihood of experiencing loss due to fraud among individuals who were willing to use AI for financial advice, whereas this association was not observed among those who were not willing to use AI. These findings have important implications for financial professionals and stakeholders involved in preventing fraud.

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