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The rising phenomenon of financial scams: evidence from Japan

Yoshihiko Kadoya (School of Economics, Hiroshima University – Higashihiroshima Campus, Higashihiroshima, Japan)
Mostafa Saidur Rahim Khan (School of Economics, Hiroshima University – Higashihiroshima Campus, Higashihiroshima, Japan)
Tomomi Yamane (Center for the Study of International Cooperation in Education, Hiroshima University – Higashihiroshima Campus, Higashihiroshima, Japan)

Journal of Financial Crime

ISSN: 1359-0790

Article publication date: 28 January 2020

Issue publication date: 23 April 2020

Abstract

Purpose

This study aims to examine the demographic, socio-economic and personality determinants of financial scams.

Design/methodology/approach

This study uses data on scams collected in Hiroshima prefecture in Japan for the analysis and analyzes using the logit regression model.

Findings

The results show that the current level of financial dissatisfaction increases the probability of being a victim of a financial scam. No other demographic or socio-economic factor is related to incidents of financial scams. Using the “big five personality traits,” this study finds that lower conscientiousness is the only personality trait that increases the probability of being a victim of a financial scam.

Research limitations/implications

Overall, the results suggest that people with low conscientiousness could be easy targets of financial scams and financially dissatisfied people could engage in potentially risky and fraudulent projects.

Originality/value

Financial scams are a long-standing concern for Japan. Every year, an increasing number of financial scams are being reported, though there are very few empirical studies examining victims’ profiles and other determining factors.

Keywords

Acknowledgements

This work is supported by JSPS KAKENHI Grant Numbers 15KK0083, 15K17075, 19K13739, 19K13684 and RISTEX, JST.

Declaration of interest statement: There is no conflict of interest to declare.

Citation

Kadoya, Y., Khan, M.S.R. and Yamane, T. (2020), "The rising phenomenon of financial scams: evidence from Japan", Journal of Financial Crime, Vol. 27 No. 2, pp. 387-396. https://doi.org/10.1108/JFC-05-2019-0057

Publisher

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Emerald Publishing Limited

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