Cognitive heuristics and risk evaluation in crisis fraud
ISSN: 1359-0790
Article publication date: 6 May 2021
Issue publication date: 14 March 2022
Abstract
Purpose
The recent COVID-19 crisis has been followed by an epidemic of fraud. This study aims to evaluate cases of COVID-19-related fraud to identify cognitive heuristics that influence decision-making under the pressure of crisis conditions.
Design/methodology/approach
An analysis of fraud advisories and cases relating to COVID-19 is conducted and matched against various types of cognitive heuristics to explain their influence on victims of crisis fraud.
Findings
The affect, availability, cue-familiarity, representativeness and scarcity heuristics are identified and explained to have a substantial influence on risk evaluations of crisis fraud.
Originality/value
The findings from this study can help individuals avoid fraud victimisation by helping them understand psychological vulnerabilities that they may be unaware of under the pressure of crisis conditions.
Keywords
Citation
Chang, J. and Chong, M.D. (2022), "Cognitive heuristics and risk evaluation in crisis fraud", Journal of Financial Crime, Vol. 29 No. 2, pp. 447-459. https://doi.org/10.1108/JFC-02-2021-0030
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited