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Article
Publication date: 27 September 2023

Sharon Wilson, Nor Azlili Hassan, Kheng Kia Khor, Santhidran Sinnappan, Afi Roshezry Abu Bakar and Soon Aun Tan

Scams are indeed malicious attempts to influence people and can take many forms, including online scams. With the increasing availability of technology, scammers have more tools…

Abstract

Purpose

Scams are indeed malicious attempts to influence people and can take many forms, including online scams. With the increasing availability of technology, scammers have more tools at their disposal to create convincing and sophisticated communications that appear to come from legitimate sources, such as emails, text messages or social media posts. These scams can be designed to trick individuals into clicking on malicious links, downloading malware or ransomware or providing sensitive information such as login information, financial information or personal details. Scammers often use social engineering techniques to persuade their targets to take specific actions, such as creating a sense of urgency, offering a reward or prize or posing as a trusted authority. These tactics can be highly effective, particularly if the target is unaware of the warning signs of a scam or is unfamiliar with how to protect themselves from online fraud. This paper aims to explore the extent and nature of this problem and evokes the concern that the general public is vulnerable and susceptible to scams if they are not resilient and aware. This paper also explores why victims fall for online scams and uncovers preventive measures to enable a direction in tacitly strategizing ways to create more impactful and effective awareness campaigns.

Design/methodology/approach

This study explores these aspects through a holistic qualitative approach. Using in-depth interview techniques with six victims, six non-victims, four law enforcement officers, four scammers and seven stakeholders from various agencies such as banks, telecommunication agencies and the Malaysian Communications and Multimedia Commission involved in combating the issue of scams.

Findings

The findings generally revealed that participants who were victims of scams felt Malaysians were susceptible to scams, easily fooled and had a nonchalant attitude. Most participants also highlighted that public safety is important for ensuring a high quality of life for citizens that should work closely between the government and non-government agencies, including effective law enforcement and crime prevention strategies.

Originality/value

The uniqueness of this study is the feedback from scammers themselves and their input towards authority and victims. Overall, the respondents provide their views drawing strength from the ever-changing technological background as well as the susceptibility of security features and vulnerability of human engagement.

Details

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

Keywords

Article
Publication date: 8 August 2023

Wahyu Fahrul Ridho

The purpose of this study is to critically examine a prevalent online scam mechanism, with the aim of understanding its exploitation of behavioral finance principles and group…

Abstract

Purpose

The purpose of this study is to critically examine a prevalent online scam mechanism, with the aim of understanding its exploitation of behavioral finance principles and group dynamics and propose effective countermeasures.

Design/methodology/approach

This study uses a blend of case study and thematic analysis, drawing from behavioral finance, social psychology and criminology, using primary source testimonies of victims to provide a detailed exploration of the scam’s operations.

Findings

This research uncovers the strategic use of four key principles: loss aversion, overconfidence, scarcity bias and social proof, within the scam operation. These tendencies are manipulated to induce victims to progressively invest into the fraudulent scheme, even amid growing suspicions.

Research limitations/implications

While the research elucidates on the workings of one specific online scam, it is necessary to explore if and how these principles are used in various other online fraudulent schemes, to develop comprehensive countermeasures.

Practical implications

The findings underscore the urgent need for enhanced public awareness, stronger corporate responsibility and robust regulatory oversight. There is a call for concerted efforts encompassing public education campaigns, fortified security protocols and strong legal frameworks for preventing such scams.

Social implications

The research emphasizes the need for collective action in ensuring a safe online space. This involves the individual user’s prudence, businesses’ proactive education initiatives and stringent legal actions against fraudulent activities.

Originality/value

This research offers novel insights into the nuanced manipulation of behavioral finance principles within online scams, based on empirical data from victim testimonials. These findings contribute to the understanding of the psychological mechanisms at play in online scams and are instrumental in formulating effective preventive strategies.

Details

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

Keywords

Article
Publication date: 28 July 2023

Eley Suzana Kasim, Noor Rohin Awalludin, Nurazilah Zainal, Allezawati Ismail and Nurul Huda Ahmad Shukri

This study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees.

Abstract

Purpose

This study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees.

Design/methodology/approach

Using a questionnaire survey, data was distributed to 200 retirees. A total of 53 responses were obtained. The data was subsequently analysed using PLS-SEM version 3 software.

Findings

Findings indicated that while financial literacy has a significant influence on awareness, there is no conclusive evidence to support the relationship between financial behaviour and financial stress on awareness. These results highlighted the critical need to strengthen financial literacy among retirees as a prevention mechanism for them to avoid from being scammed.

Research limitations/implications

The finding from this study is relevant to regulators and law enforcement agencies to aid potential and actual retirees by educating them on the danger of investment scams.

Originality/value

As there are relatively few studies conducted on investment scams specifically among retirees, this study extends the investment scam literature by examining the underlying factors that affect their awareness towards the fraudulent activities.

Details

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

Keywords

Article
Publication date: 5 May 2023

Alain Tambe Ebot

This study aims to examine how advance fee fraud (AFF) scammers build their criminal expertise over time and why the AFF scamming deception process succeeds.

Abstract

Purpose

This study aims to examine how advance fee fraud (AFF) scammers build their criminal expertise over time and why the AFF scamming deception process succeeds.

Design/methodology/approach

This study is interpretive, based on case study interview data with two scammers operating in Africa. The interviews were done over a period of time, and the data collection and analysis processes were iterative, primarily driven by the interview data.

Findings

The authors identify four processes that explain how scammers build criminal expertise, namely, socializing with scammers, accepting scamming definitions, practicing scamming techniques and manipulating digital technologies. The fourth process (manipulating digital technologies) also explains why scammer’s tactics are successful.

Originality/value

AFF scamming is a major crime affecting individuals and organizations worldwide, yet it remains under researched as little is known about scammers, their expertise and why their deceptive techniques are successful. The first contribution identifies four processes by which individuals build scamming criminal expertise as they transition from scammers-in-the-making to full-blown active scammers. The second contribution identifies the rationalizations used by scammers-in-the-making and scammers to justify transitioning into scamming and engaging in scamming criminality. The third contribution explains how the digital environment contributes to the processes of building scamming criminal expertise and why scammer’s deceptive tactics are sometimes successful.

Details

Information & Computer Security, vol. 31 no. 4
Type: Research Article
ISSN: 2056-4961

Keywords

Article
Publication date: 6 January 2021

Jan Bailey, Louise Taylor, Paul Kingston and Geoffrey Watts

The issue of financial abuse is highlighted in the Care Act (2014). One category of financial abuse is consumer fraud or “scams.” Evidence suggests that scams are becoming…

Abstract

Purpose

The issue of financial abuse is highlighted in the Care Act (2014). One category of financial abuse is consumer fraud or “scams.” Evidence suggests that scams are becoming increasingly ubiquitous, yet how scams impact older adults remains under-researched. The purpose of this paper is to report data from 80 older adults’ written responses to a Mass Observation Archive Directive, commissioned in autumn 2015, which focused on scams.

Design/methodology/approach

A qualitative approach was used with data captured via written responses to a set of questions. There was no limit on the length of written accounts, and respondents remained anonymous. Data were analysed thematically, resulting in four key themes.

Findings

The data indicated scams impact individuals in terms of health and well-being, irrespective of whether they have experienced financial loss, and trigger implementation of strategies intended to avoid being defrauded. There was also evidence of scam-related stigma with individuals who are defrauded being subject to derision and censure.

Social implications

Individuals who have been victimised by fraudsters may need access to practical and emotional support. This requires the design of appropriate interventions and the stigma associated with being scammed to be addressed.

Originality/value

This paper adopts an original approach to collecting rich, candid data about an under-researched topic. The authors highlight that anti-scam interventions should equip individuals to identify and avoid scams without inciting fear or anxiety; proposing this may be facilitated by drawing on health and safety risk assessment protocol when designing anti-scam interventions.

Details

The Journal of Adult Protection, vol. 23 no. 1
Type: Research Article
ISSN: 1466-8203

Keywords

Article
Publication date: 28 January 2020

Yoshihiko Kadoya, Mostafa Saidur Rahim Khan and Tomomi Yamane

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

1002

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.

Details

Journal of Financial Crime, vol. 27 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 15 May 2020

Irfan Ullah, Wiqar Ahmad and Arshad Ali

This paper aims to identify the key patronage factors that encouraged the public for investment in the Modaraba scam – a Ponzi scheme perpetrated in Pakistan with a whim of…

Abstract

Purpose

This paper aims to identify the key patronage factors that encouraged the public for investment in the Modaraba scam – a Ponzi scheme perpetrated in Pakistan with a whim of Sharīʿah-compliant business and intermediation of religious clerics.

Design/methodology/approach

In a qualitative research, semi-structured interviews were conducted with the investors of the scam followed by thematic analysis to conclude on the subject matter.

Findings

The results reveal numerous stimuli, thematically categorized as the monetary stimulus, religiosity stimulus and lubricants, which mobilized investment towards the scam. In general, a lucrative rate of return on investment and personality of the agents, being religious clerics, were the two prominent reasons, which convinced unanimously all investors. In particular, the religiosity stimulus (agents’ personality and Sharīʿah-compliant business) was a novel and eye-catching slogan of the scheme.

Originality/value

Keeping in view the amount of scam and number of victims, this research is a robust attempt to conclude on the determinants of investment decision in the Modaraba scam.

Details

Journal of Financial Crime, vol. 29 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 27 January 2020

Richard G. Brody, Sara Kern and Kehinde Ogunade

The purpose of this study is to examine and provide additional insights into Nigerian 419 scams. Such scams may also be referred to as advance fee frauds. This study not only…

Abstract

Purpose

The purpose of this study is to examine and provide additional insights into Nigerian 419 scams. Such scams may also be referred to as advance fee frauds. This study not only provides a historical perspective as to why these scams continue to remain popular and successful but also addresses cultural issues and technological issues associated with this type of fraud.

Design/methodology/approach

The analysis is primarily conceptual, focusing on the historical underpinnings of 419 scams as well as changes that have occurred as a result of technological advancements. Further, an active Nigerian scammer agreed to be interviewed by one of the authors and the information has been incorporated into this paper.

Findings

Fraudsters in Nigeria use a more “scientific” approach to identifying victims. The Government of Nigeria has been implementing some new policies and techniques to identify these fraudsters as well as to attempt to curtail such fraudulent activities. Unfortunately, these attempts have had limited success and more will be needed to slow down 419 scammers. The total elimination of such scams is unlikely.

Originality/value

Although many 419 scams have been reported in the news, actual studies in this area are quite limited. Further, current research has not produced comprehensive papers that focus on why these frauds ever started, how they have developed over time and how technology has impacted such frauds. This paper is among the first to include “inside” information from an actual Nigerian scammer and thus adds significant value to the existing literature.

Details

Journal of Financial Crime, vol. 29 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 20 March 2020

David Lacey, Sigi Goode, Jerry Pawada and Dennis Gibson

The purpose of this paper is to undertake an exploratory study on mapping the investment fraud methods and tactics used by scammers against the emerging literature on scam

Abstract

Purpose

The purpose of this paper is to undertake an exploratory study on mapping the investment fraud methods and tactics used by scammers against the emerging literature on scam compliance.

Design/methodology/approach

Qualitative interviews were conducted with victims of investment fraud supported by the engagement of specialist counsellors and allied health professionals who specialise in scam victim support (including investment fraud).

Findings

Investment fraud offending in the cases sampled exhibited a number of dominant offending traits and methodological themes. These included a strong reliance or dependency on legitimate service provisioning on the part of the fraudster and the use of key trust measures to lure the victim. The empirical data revealed the presence of a number of scam compliance influences captured in the literature, including trust, social influence and urgency, as well as others not previously documented that pave the way for further research attention.

Research limitations/implications

The research only examined a sample of investment fraud victim experiences that engaged a national victim support service immediately following detection over a 24 month period.

Practical implications

The research found that offending relied upon the participation of trust-building signals and measures. Legitimate economy participants appear to play a dominant role in enabling investment scam activities, further creating efficiencies for criminals. The offending tended to follow a number of distinct but connected phases. Impacts were influenced by specific offending attributes, such as whether remote access was given to offenders of a victim’s device, as well as the nature of the identity credentials access.

Originality/value

The research has practically applied an emerging view of scam compliance influences and vulnerabilities within an investment fraud context. The study is novel in its thematic analysis of the distinct phases and tactics used by scammers.

Details

Journal of Criminological Research, Policy and Practice, vol. 6 no. 1
Type: Research Article
ISSN: 2056-3841

Keywords

Article
Publication date: 21 October 2021

Tuan Phong Ly, Kim Quang Yi and Hilda Hio Fong Fok

In Vietnam, there is a phenomenon that domestic tourists return to some tourist destinations despite their reputation of tourists being scammed. This study aims to focusses on…

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Abstract

Purpose

In Vietnam, there is a phenomenon that domestic tourists return to some tourist destinations despite their reputation of tourists being scammed. This study aims to focusses on Vung Tau City in Vietnam as a popular seaside destination to explain this interesting phenomenon.

Design/methodology/approach

Thereby, 22 domestic tourists who are repeated visitors and had experienced scams directly and/or indirectly in Vung Tau were interviewed and later took part in a self-evaluation.

Findings

The data shows that unreasonable charges, switching products, false reporting and dishonest middle-persons are the major dominant scams in the city. Furthermore, all visitors could be scammed regardless of gender, educational background or age. Even though scams may occur, the city remains to be a popular getaway destination for the Southern part of Vietnam due to its irreplaceable natural resources and visit intention of domestic tourists. The local authority has tried different ways to suppress issues related to tourist scams, however, due to their sociocultural and economic conditions, scams find ways to exist. Under this circumstance, domestic tourists tend to figure out how to handle scams by themselves whilst very few of them rely on the public sector to deal with them.

Practical implications

Finally, some practical strategies and recommendations are given as a reference for the local authority and businesses for long-term tourist business development.

Originality/value

This paper, respectively, investigates the common scams against domestic tourists in Vung Tau, reasons they still return to this destination, and finally, how these visitors attempt to avoid scams.

Details

International Journal of Tourism Cities, vol. 8 no. 1
Type: Research Article
ISSN: 2056-5607

Keywords

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