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Article
Publication date: 15 May 2007

Michael D. Reisig and Kristy Holtfreter

This study seeks to identify personal characteristics that help to explain variation in consumer confidence in legal authorities' ability to effectively deal with fraud

540

Abstract

Purpose

This study seeks to identify personal characteristics that help to explain variation in consumer confidence in legal authorities' ability to effectively deal with fraud victimization in the State of Florida.

Design/methodology/approach

The study uses cross‐sectional survey data from 918 adults who participated in a telephone interview in 2004 and 2005. Univariate statistics are used to describe the distribution of the dependent variable (i.e. consumer confidence in legal authorities). Hypotheses are tested using bivariate and multivariate statistical techniques.

Findings

Results show that less than one‐half of respondents (48.2 percent) report that they have either “a great deal” or “quite a bit” of confidence in the ability of legal authorities to respond to consumer fraud victimization. Bivariate correlations show that younger respondents, those with more formal education, recent fraud victims, and individuals inclined to take risks with their financial assets report lower levels of confidence. These findings persist in a multivariate context.

Research limitations/implications

Because these data were collected from survey respondents living in a single state, one should exercise caution when generalizing these findings to other settings.

Practical implications

The findings can be used to target public awareness efforts and educational campaigns to consumer groups with low levels of confidence in legal authorities. Doing so may not only help bolster confidence, but also potentially increase rates of fraud victimization reporting.

Originality/value

This study extends the literature on confidence in legal authorities to the previously unexplored crime‐related context of consumer fraud victimization.

Details

Journal of Financial Crime, vol. 14 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 2 September 2014

Chioma Vivian Amasiatu and Mahmood Hussain Shah

First party fraud is fraud committed by an account holder or customer that does not involve the use of a stolen identity. This type of fraud has grown substantially in…

1639

Abstract

Purpose

First party fraud is fraud committed by an account holder or customer that does not involve the use of a stolen identity. This type of fraud has grown substantially in recent times due to increased online shopping and is becoming a major concern for online retail businesses, hereby referred to as e-tailers. The purpose of this paper is to provide insights into the motives and nature of first party fraud in e-tailing.

Design/methodology/approach

Systematic literature review was used to synthesise existing research on first party fraud. The authors used scholarly literature as well as grey literature to help understand the motives and nature of this growing business problem.

Findings

Findings reveal a myriad of schemes and motives for engaging in first party fraud.

Research limitations/implications

The findings of this paper employed very little literature due to availability. However, the authors believe that the findings are still useful for advancing the knowledge in this emerging research area.

Practical implications

This study will be useful to researchers as well as practitioners in the retail industry in helping understand the nature and motives of first party frauds which could in turn help devise preventive strategies. The study also makes a case for increased managerial interest and involvement in reducing first party fraud.

Originality/value

A comprehensive literature search presented in this paper shows that this is the first paper to synthesise the various forms of first party fraud in e-tailing.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Book part
Publication date: 16 September 2022

Željka Mesić and Josip Juračak

Over the past decade, there has been a significant increase in interest about fraud in food supply chain. Victims of food fraud and counterfeiting can be different actors…

Abstract

Over the past decade, there has been a significant increase in interest about fraud in food supply chain. Victims of food fraud and counterfeiting can be different actors in the supply chain: distributors, retailers and, most importantly, customers. Victims of food fraud face not only economic losses, but also health and safety risks when handling or consuming fraudulent products. The aim of this paper is to present the situation regarding counterfeiting and fraud in the food supply chain from a theoretical and practical point of view. The attitudes and opinions of consumers, experts in the field and retailers on the occurrence of food fraud and counterfeiting were explored. The results of an online survey of 326 consumers in Croatia showed that their awareness of food fraud is low. Most of them are only partially familiar with food fraud or do not know anything about this issue. The respondents are most familiar with mislabelling of organic products, meat packaging date fraud, and misuse of geographical indications (PDO/PGI). Consumers have low trust in all organisations that should protect them from food fraud (e.g. Croatian national institutions and authorities). A survey with eight food experts (olive oil, wine, milk and dairy products, honey, strong alcoholic beverages) found that they very rarely encounter food fraud in their work, usually two or more times a year. Retailers are aware of the existence of food fraud, but still do not take measures beyond the usual level in their quality assurance systems. To raise awareness of food fraud, education of all stakeholders by relevant institutions is needed.

Details

Counterfeiting and Fraud in Supply Chains
Type: Book
ISBN: 978-1-80117-574-6

Keywords

Article
Publication date: 18 June 2018

Haithem Zourrig, Jeongsoo Park, Kamel El Hedhli and Mengxia Zhang

The purpose of this paper is to investigate how cultural tightness may influence consumers’ attitudes toward insurance services and occurrence of insurance fraud.

Abstract

Purpose

The purpose of this paper is to investigate how cultural tightness may influence consumers’ attitudes toward insurance services and occurrence of insurance fraud.

Design/methodology/approach

Drawing on Gelfand et al.’s (2011) theory of tight and loose cultures, the authors theorize that perceived wrongness of insurance fraud, fraud occurrence and perceived risk of being caught depend on the cultural tightness. Using field data from a global European social survey (ESS), the authors investigate these differences across two fairly different European countries – Norway (i.e. tight culture) and Ukraine (i.e. loose culture).

Findings

Consumers from tight culture report less tolerance for insurance fraud (inflating insurance claim) are less likely to commit an insurance fraud, and they perceive higher level of risk of being caught than their counterparts from loose culture (Ukraine).

Practical implications

Understanding cultural variability in attitude toward insurance fraud, the occurrence of insurance fraud and the sensitivity to the risk of being caught could enrich the authors knowledge about how to prevent insurance fraud.

Social implications

Consumer protection agencies, consumer educators and policymakers could all benefit from understanding cultural variability in attitude toward fraud. This will potentially help to design effective learning and education programs to sensitize customers to the illegal and unethical aspects of fraudulent behaviors.

Originality/value

Insurance fraud is a universal issue and exists in many European countries, yet no previous work has investigated the effect of cultural tightness–looseness on fraud perception.

Details

International Journal of Quality and Service Sciences, vol. 10 no. 2
Type: Research Article
ISSN: 1756-669X

Keywords

Article
Publication date: 21 June 2021

Haithem Zourrig, Mengxia Zhang, Kamel El Hedhli and Imene Becheur

This study aims to apply McCornack’s (1992) information manipulation theory to the context of fraud and investigates the effects of culture on perceived deceptiveness.

Abstract

Purpose

This study aims to apply McCornack’s (1992) information manipulation theory to the context of fraud and investigates the effects of culture on perceived deceptiveness.

Design/methodology/approach

In total, 400 Chinese consumers and an equal-size sample of Canadian consumers were recruited to fill an online survey. The survey integrates four scenarios of insurance fraud and measures of perceived deceptiveness, cultural tightness and horizontal-vertical idiocentrism allocentrism, in addition to some control variables.

Findings

Results show that at the societal level of culture, perceived deceptiveness is higher in individualistic than in collectivistic cultures. When accounting for the level of situational constraint, cultural tightness was found to magnify the perceived deceptiveness. At the individual level of culture, vertical-allocentrism and vertical-idiocentrism were found to weigh against the perception of deceptiveness.

Originality/value

Understanding cultural differences in perceived deceptiveness is helpful to spot sources of consumers’ vulnerability to fraud tolerance among a culturally diverse public.

Details

Journal of Consumer Marketing, vol. 38 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 23 May 2019

Chioma Vivian Amasiatu and Mahmood Hussain Shah

First-party fraud in which retail consumers commit fraud against retailers is a growing problem. However, to date studies on retail crime have focused almost entirely on…

Abstract

Purpose

First-party fraud in which retail consumers commit fraud against retailers is a growing problem. However, to date studies on retail crime have focused almost entirely on fraudulent consumer behaviours in physical stores. With the growth of e-commerce, the losses to retailers from this fraud are growing so there is strong need to research this problem from multiple perspectives. The paper aims to discuss this issue.

Design/methodology/approach

The authors conducted three case studies and a total of 24 semi-structured interviews with retail managers, and evaluated their existing prevention-related documentation. Fraud management lifecycle theory was used to organise and discuss the findings.

Findings

The authors found that many retailers are treating this problem as just a cost of doing business online and have no detailed plans for dealing with this problem or any reporting to law enforcement agencies. However, they have begun working with delivery companies for delivery accuracy. Use of convenience stores as collection points is also showing early improvements.

Research limitations/implications

The small number of cases and interviews used is a limitation of this study. However, the authors believe that the findings are useful for advancing knowledge in this emerging research area.

Practical implications

This study provides insight into existing management practices in this domain, and makes recommendations on how to improve the management of first-party fraud. The study also makes a case for increased managerial interest and involvement in reducing first-party fraud. The study also helps bridge a glaring gap in existing literature and provides useful leads for further research.

Originality/value

To the authors’ knowledge, this is the first study to evaluate the existing practices employed to manage first-party fraud in e-retail.

Details

International Journal of Retail & Distribution Management, vol. 47 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 3 October 2016

Isaac Akomea-Frimpong, Charles Andoh and Eric Dei Ofosu-Hene

This paper aims to measure the extent of effects of insurance fraud on the financial performance of insurance companies in Ghana. It also examines the causes and stringent…

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Abstract

Purpose

This paper aims to measure the extent of effects of insurance fraud on the financial performance of insurance companies in Ghana. It also examines the causes and stringent measures that can be used to fight against insurance fraud.

Design/methodology/approach

Primary and secondary data obtained from 39 insurers in Ghana are used in this paper. A multiple regression model is used to determine the relationship between financial performance and insurance fraud variables.

Findings

The results from the model indicate that statistically insurance fraud has a significant negative effect on the annual return on assets (financial performance) of insurers in Ghana. Also, weak internal controls, poor remuneration of employees, falsified documents, deliberate acts of policyholders to profit from the insurance contract and inadequate training for independent brokers are found to be the major causes of insurance fraud in Ghana. To deter insurance fraud, effective internal fraud policy, rigorous assessment of insurance policies and claims, adequate training for independent brokers on insurance fraud and modern information technology tools are paramount in fighting this menace in Ghana.

Research limitations/implications

These findings are to have substantial impact on the techniques insurance companies will develop to fight insurance fraud and the policies that will be developed by governments and national insurance regulatory bodies to fight this menace.

Originality/value

The main value of this paper is the determination of the key variables that constitute insurance fraud and their impacts on the annual financial performance of insurance companies in Ghana.

Details

Journal of Financial Crime, vol. 23 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 22 June 2022

Nilaya Murthy and Santosh Gopalkrishnan

The purpose of this study is to find out if there is a sequence or pattern to digital frauds and whether the openness quotient of any individual has a meaningful role to…

Abstract

Purpose

The purpose of this study is to find out if there is a sequence or pattern to digital frauds and whether the openness quotient of any individual has a meaningful role to play in them becoming victims of digital frauds. The legal and regulatory angle of digital frauds and relief measures for social media openness and frauds are discussed to examine the connection between openness, identity data, visibility, vulnerability, digital frauds and social media sharing of information.

Design/methodology/approach

This study is empirical and investigative research. Primary data was collected via questionnaires circulated among participants from various age groups to understand the implications of different demographic factors such as age, websites used, profiles created and data shared on the internet, social media and e-commerce websites.

Findings

The results exhibit that the openness factor does affect vulnerability and has an influence on the risk and legal component of inclination towards digital frauds.

Practical implications

This research study results in bridging the gap by increasing the level of understanding and awareness in users toward achieving proactive and regulated behaviour and comprehending the violation of various acts of digital frauds and its implications, especially in the Indian banking sector.

Originality/value

This study will be beneficial to all individuals alike in understanding the implications of excessive openness toward digital platforms and evaluating generic and legal solutions to avoid becoming victims of digital fraud.

Details

International Journal of Law and Management, vol. 64 no. 4
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 4 April 2018

Chioma Vivian Amasiatu and Mahmood Hussain Shah

First party fraud in which consumers commit fraud against retailers is a growing problem. Research in this area is very limited which means that there is almost no…

Abstract

Purpose

First party fraud in which consumers commit fraud against retailers is a growing problem. Research in this area is very limited which means that there is almost no guidance available to mitigate this problem. Existing fraud management frameworks focus on the management of other fraud, such as identity theft or employee instigated fraud. Due to the different nature of these frauds, these frameworks do not adequately address first party fraud. Therefore, the purpose of this paper is to propose an adapted version of the fraud management lifecycle framework which is specific to first party fraud management.

Design/methodology/approach

The authors conducted a systematic literature review and compared/contrasted a number of existing fraud management frameworks in related domains to see which one would be most suitable for first party fraud management.

Findings

The authors found Wilhelm’s fraud management framework the most promising for adaptation and application to the first party fraud context. By modifying an existing framework according to the contextual requirements, the authors make the framework much more relevant to first party fraud management.

Practical implications

The framework could help retail managers better understand and manage this growing business problem and open new streams for further research.

Originality/value

This research also makes an important contribution by proposing a framework and by helping bridge a glaring and problematic gap in existing literature and opening up new streams of research.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Book part
Publication date: 16 September 2022

Aleksandra Nikolić, Alen Mujčinović and Dušanka Bošković

Food fraud as intentional deception for economic gain relies on a low-tech food value chain, that applies a ‘paper-and-pencil approach’, unable to provide reliable and…

Abstract

Food fraud as intentional deception for economic gain relies on a low-tech food value chain, that applies a ‘paper-and-pencil approach’, unable to provide reliable and trusted data about food products, accompanied processes/activities and actors involved. Such approach has created the information asymmetry that leads to erosion of stakeholders and consumers trust, which in turn discourages cooperation within the food chain by damaging its ability to decrease uncertainty and capability to provide authentic, nutritional, accessible and affordable food for all. Lack of holistic approach, focus on stand-alone measures, lack of proactive measures and undermined role of customers have been major factors behind weaknesses of current anti-fraud measures system. Thus, the process of strong and fast digitalisation enabled by the new emerging technology called Industry 4.0 is a way to provide a shift from food fraud detection to efficient prevention. Therefore, the objective of this chapter is to shed light on current challenges and opportunities associated with Industry 4.0 technology enablers' guardian role in food fraud prevention with the hope to inform future researchers, experts and decision-makers about opportunities opened up by transforming to new cyber-physical-social ecosystem, or better to say ‘self-thinking’ food value chain whose foundations are already under development. The systematic literature network analysis is applied to fulfil the stated objective. Digitalisation and Industry 4.0 can be used to develop a system that is cost effective and ensures data integrity and prevents tampering and single point failure through offering fault tolerance, immutability, trust, transparency and full traceability of the stored transaction records to all agri-food value chain partners. In addition, such approach lays a foundation for adopting new business models, strengthening food chain resilience, sustainability and innovation capacity.

Details

Counterfeiting and Fraud in Supply Chains
Type: Book
ISBN: 978-1-80117-574-6

Keywords

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