Surely this is exactly the right test for what they wanted to show though.
"Do you want the situation where you have a definite material loss, or the situation that some people will see as a positive/harmless interaction and others will see as a potentially fatal interaction?"
If it was "Do you prefer to be burglarized and nobody gets hurt; or, stopped by the police but nothing bad happens in that police stop" - that just tests how people weigh up being stopped (when they know nothing bad will happen) versus the loss of their material things.
Having a known bad outcome versus an unknown outcome is the right way to tell how much people fear the unknown one/how risky they see it as.