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In smaller towns, everybody typically knows everybody else and are usually suspicious of strangers. Con men prefer a larger target base, and an area in which they can work without always running into the same people.

Another View: While the above answer has merit, it is also possible to take the opposite view, that inhabitants of small towns, simply BECAUSE they have a close relationship with other people, tend to be more trusting - even of strangers - and therefore might tend to be more gullible.

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