Improving consumers' financial literacy.

• Position: Your Life

Researchers estimate that up to $50,000,000,000 of direct, measurable costs are lost to fraud each year, and the Federal Trade Commission found that 25,600,000 U.S. citizens were victims of fraud in the last 12 months. Gary Cardone, CEO of eConsumer Services, Tampa Bay, Fla., a dispute mediation firm, proposes that efforts to improve Americans' financial literacy can help preserve their money and protect them from fraudsters.

In its most recent Consumer Fraud Survey, the FTC found that 10.8% of citizens fell prey to fraud, suffering 37,800,00 fraud incidents in total. FTC analysts determined that individuals with limited numeric skills are at least 50% more likely to be fraud victims, while those who have more personal debt than they can handle financially are about twice as likely to be victimized by fraud.

Meanwhile, a study by the Financial Industry Regulatory Authority, Inc., indicates that nearly two-thirds of Americans lack financial literacy; only 37% scored four out of five or better on a financial literacy test covering interest rates, bond prices, mortgage interest, inflation, and investment risk. FINRA also found that 18% of respondents spend more than they...