Pub Date : 2023-09-11DOI: 10.1108/jfc-07-2023-0172
Tareq Na′el Al-Tawil
Purpose The purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE). Design/methodology/approach The paper will first focus on examining whether money laundering and CSR are compatible. Such an analysis will then inform decisions on whether to include anti-money laundering in CSR disclosure requirements. Findings Key findings from the analysis have shown that the UAE CSR law does not explicitly mention money laundering as part of CSR disclosure requirements. Anti-money laundering (AML) and CSR are compatible and convergence, but money laundering is not yet an integral element of CSR disclosure requirements. Originality/value There are no clear mechanisms or provisions under the UAE CSR law on how money laundering can be included in CSR disclosure requirements, whether voluntary or mandatory. A pressing challenge now is whether the UAE should regulate AML/combatting the financing of terrorism disclosures under the CSR law. The main concern is that such a move could make mandatory disclosure another technical and regulatory requirement that UAE business must comply, which will be inimical to fostering a strong CSR culture.
{"title":"Money laundering: effectiveness of the corporate social responsibility (CSR) law in the UAE","authors":"Tareq Na′el Al-Tawil","doi":"10.1108/jfc-07-2023-0172","DOIUrl":"https://doi.org/10.1108/jfc-07-2023-0172","url":null,"abstract":"Purpose The purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE). Design/methodology/approach The paper will first focus on examining whether money laundering and CSR are compatible. Such an analysis will then inform decisions on whether to include anti-money laundering in CSR disclosure requirements. Findings Key findings from the analysis have shown that the UAE CSR law does not explicitly mention money laundering as part of CSR disclosure requirements. Anti-money laundering (AML) and CSR are compatible and convergence, but money laundering is not yet an integral element of CSR disclosure requirements. Originality/value There are no clear mechanisms or provisions under the UAE CSR law on how money laundering can be included in CSR disclosure requirements, whether voluntary or mandatory. A pressing challenge now is whether the UAE should regulate AML/combatting the financing of terrorism disclosures under the CSR law. The main concern is that such a move could make mandatory disclosure another technical and regulatory requirement that UAE business must comply, which will be inimical to fostering a strong CSR culture.","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135937975","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-05DOI: 10.1108/jfc-02-2023-0036
Zainab Ahmadi, Mahdi Salehi, Mahmoud Rahmani
Purpose This study aims to address the relationship between economic complexities (EC) and the green economy (GE) with fraud in the listed companies on the Tehran stock exchange. The authors study whether EC and GE increase the detection of financial statement fraud. Design/methodology/approach The authors used a multiple regression model based on the panel data method and fixed effect model to test hypotheses. The sample includes 1,351 companies listed on the Iranian stock exchange from 2014 to 2021. Findings The results show a negative and significant relationship between EC and GE with financial statement fraud. Originality/value Since this research is the first to address the mentioned topic in emerging markets, it provides helpful insights for financial statement users, analysts and legal entities. The study fills the literature gap and promotes knowledge regarding its relevant literature.
{"title":"The effect of economic complexities and green economy on financial statements fraud","authors":"Zainab Ahmadi, Mahdi Salehi, Mahmoud Rahmani","doi":"10.1108/jfc-02-2023-0036","DOIUrl":"https://doi.org/10.1108/jfc-02-2023-0036","url":null,"abstract":"\u0000Purpose\u0000This study aims to address the relationship between economic complexities (EC) and the green economy (GE) with fraud in the listed companies on the Tehran stock exchange. The authors study whether EC and GE increase the detection of financial statement fraud.\u0000\u0000\u0000Design/methodology/approach\u0000The authors used a multiple regression model based on the panel data method and fixed effect model to test hypotheses. The sample includes 1,351 companies listed on the Iranian stock exchange from 2014 to 2021.\u0000\u0000\u0000Findings\u0000The results show a negative and significant relationship between EC and GE with financial statement fraud.\u0000\u0000\u0000Originality/value\u0000Since this research is the first to address the mentioned topic in emerging markets, it provides helpful insights for financial statement users, analysts and legal entities. The study fills the literature gap and promotes knowledge regarding its relevant literature.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46390868","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-22DOI: 10.1108/jfc-07-2023-0164
Deymah Alweqyan
Purpose This paper aims to manage the dilemma of cyberspace operations, as the incidence of cybercrimes has increased tremendously in the past few decades, turning cyberspace into a field of war in which all nations must fight. For many countries, cyberattacks and conflicts, and even the basic operation of cyberspace in general, are new territories. Furthermore, international law today does not address many aspects of cyber warfare, as it typically has dealt with only traditional warfare. Design/methodology/approach This study examined this crime whether it is a domestic or an international crime and whether cyber wars are under international law or domestic law to address these issues. Findings Although many attempts to criminalize these actions occurred, the findings suggest that the world has failed to frame the legal instruments against cyberattacks. The findings also suggest recommendations to solve this issue. Originality/value To the best of the author’s knowledge, this study analyzed the comparison between the same crime in the perspective of domestic and international law, highlighting an unsolved dilemma in the world, suggesting some unprecedented solutions to solve.
{"title":"Cyberattacks in the context of international law enforcement","authors":"Deymah Alweqyan","doi":"10.1108/jfc-07-2023-0164","DOIUrl":"https://doi.org/10.1108/jfc-07-2023-0164","url":null,"abstract":"\u0000Purpose\u0000This paper aims to manage the dilemma of cyberspace operations, as the incidence of cybercrimes has increased tremendously in the past few decades, turning cyberspace into a field of war in which all nations must fight. For many countries, cyberattacks and conflicts, and even the basic operation of cyberspace in general, are new territories. Furthermore, international law today does not address many aspects of cyber warfare, as it typically has dealt with only traditional warfare.\u0000\u0000\u0000Design/methodology/approach\u0000This study examined this crime whether it is a domestic or an international crime and whether cyber wars are under international law or domestic law to address these issues.\u0000\u0000\u0000Findings\u0000Although many attempts to criminalize these actions occurred, the findings suggest that the world has failed to frame the legal instruments against cyberattacks. The findings also suggest recommendations to solve this issue.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this study analyzed the comparison between the same crime in the perspective of domestic and international law, highlighting an unsolved dilemma in the world, suggesting some unprecedented solutions to solve.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41640644","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-17DOI: 10.1108/jfc-06-2023-0143
Tomáš Kristek
Purpose The lack of transparency contributes to the growing corruption problem in various spheres of society. This paper aims to analyse the sustainability report disclosures published by Czech companies in 2021 and registered by the Association of Social Sustainability of the Czech Republic. Design/methodology/approach Based on three hypotheses, the relationships between the level of disclosed anti-corruption information and selected variables related to the corporate environment are tested using content analysis and the Mann–Whitney test. Findings This paper reveals that Czech firms provide more information if they operate in a higher-risk environment (energy, materials and financial services) or are state-owned (or with a state ownership stake). It also reveals that companies participating in corporate social responsibility (CSR) initiatives (UN Global Compact and Global Reporting Initiative) increase their credibility and social responsibility with more disclosed information. Research limitations/implications A limitation of this paper is the smaller number of selected companies matching the chosen criteria. In addition, a certain degree of subjectivity is likely to have manifested in the process of coding the reports and in the use of the content analysis method. Originality/value The paper contributes to research that addresses the fight against corruption and CSR issues with a specific study in a small, Central European country and provides new empirical data on the anti-corruption fight problem.
{"title":"Corruption fight in the Czech Republic: sustainability reports evidence","authors":"Tomáš Kristek","doi":"10.1108/jfc-06-2023-0143","DOIUrl":"https://doi.org/10.1108/jfc-06-2023-0143","url":null,"abstract":"\u0000Purpose\u0000The lack of transparency contributes to the growing corruption problem in various spheres of society. This paper aims to analyse the sustainability report disclosures published by Czech companies in 2021 and registered by the Association of Social Sustainability of the Czech Republic.\u0000\u0000\u0000Design/methodology/approach\u0000Based on three hypotheses, the relationships between the level of disclosed anti-corruption information and selected variables related to the corporate environment are tested using content analysis and the Mann–Whitney test.\u0000\u0000\u0000Findings\u0000This paper reveals that Czech firms provide more information if they operate in a higher-risk environment (energy, materials and financial services) or are state-owned (or with a state ownership stake). It also reveals that companies participating in corporate social responsibility (CSR) initiatives (UN Global Compact and Global Reporting Initiative) increase their credibility and social responsibility with more disclosed information.\u0000\u0000\u0000Research limitations/implications\u0000A limitation of this paper is the smaller number of selected companies matching the chosen criteria. In addition, a certain degree of subjectivity is likely to have manifested in the process of coding the reports and in the use of the content analysis method.\u0000\u0000\u0000Originality/value\u0000The paper contributes to research that addresses the fight against corruption and CSR issues with a specific study in a small, Central European country and provides new empirical data on the anti-corruption fight problem.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47564738","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-14DOI: 10.1108/jfc-03-2023-0055
O. Olujobi, Tunde Ebenezer Yebisi
Purpose The purpose of this study is to examine the corruption prevalent in the distribution of COVID-19 palliatives during the lockdown and movement restrictions in the country. This study seeks to analyse the current state of corruption in the distribution of COVID-19 palliatives and public health facilities in Nigeria while also providing a legal insight and strategic blueprint to combat corruption. To this end, this study will address the current legal framework for combating corruption and build upon this to formulate a working strategy for tackling corruption in the future. Design/methodology/approach Using a doctrinal legal research methodology, this study draws upon existing literature, tertiary data sources and information from the Nigeria Centre for Disease Control. The collected data is analysed and compared with current literature to identify key findings. Rent-seeking and utilitarian theories of the law were examined to guide this study. This study offers useful insights into combating corruption. The use of this method is justified, as it enhances the credibility of the findings on the importance of strategies for future emergencies. This legal research approach is consistent with the law and can be easily verified. The empirical aspect of this study involved a survey of multidimensional health-care and economic data set of 36 states in Nigeria plus the Federal Capital Territory on COVID-19 in Nigeria. A survey linearised regression model was estimated to determine the influence of government revenue and public health-care facilities in the control of the virus spread in Nigeria. Findings This study reveals the need for emphasis on the imperative of combating corruption in the distribution of COVID-19 palliatives and establishing economic resilience through transparent and accountable practices, supported by legal frameworks. Research limitations/implications Rent-seeking and utilitarian theories of law are evaluated because of their impacts on combating corruption. The limitation of this study is the intricacy of gathering data on COVID-19 palliatives corruption in Nigeria because of secrecy and the absence of reliable data on the subject. Practical implications Estimating the exact number of stolen palliatives and their fiscal impact on Nigeria's economy proves to be a formidable task because of the covert nature of corruption. This study equips policymakers in Nigeria with a better understanding of the legal challenges posed by corruption in the health care sector and provides an effective strategy to combat it. Social implications The lack of reliable data on the extent of palliative theft hinders the ability of lawmakers to enact effective legislation and strategies for combating corruption in the distribution of COVID-19 palliatives and addressing future emergencies in Nigeria. The policy implications of this study can assist policymakers in Nigeria and other countries in formulating measures to combat corruption in
{"title":"Tackling corruption in the distribution of Covid-19 palliatives and public health facilities in Nigeria: legal insights and strategic blueprint for future emergencies","authors":"O. Olujobi, Tunde Ebenezer Yebisi","doi":"10.1108/jfc-03-2023-0055","DOIUrl":"https://doi.org/10.1108/jfc-03-2023-0055","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to examine the corruption prevalent in the distribution of COVID-19 palliatives during the lockdown and movement restrictions in the country. This study seeks to analyse the current state of corruption in the distribution of COVID-19 palliatives and public health facilities in Nigeria while also providing a legal insight and strategic blueprint to combat corruption. To this end, this study will address the current legal framework for combating corruption and build upon this to formulate a working strategy for tackling corruption in the future.\u0000\u0000\u0000Design/methodology/approach\u0000Using a doctrinal legal research methodology, this study draws upon existing literature, tertiary data sources and information from the Nigeria Centre for Disease Control. The collected data is analysed and compared with current literature to identify key findings. Rent-seeking and utilitarian theories of the law were examined to guide this study. This study offers useful insights into combating corruption. The use of this method is justified, as it enhances the credibility of the findings on the importance of strategies for future emergencies. This legal research approach is consistent with the law and can be easily verified. The empirical aspect of this study involved a survey of multidimensional health-care and economic data set of 36 states in Nigeria plus the Federal Capital Territory on COVID-19 in Nigeria. A survey linearised regression model was estimated to determine the influence of government revenue and public health-care facilities in the control of the virus spread in Nigeria.\u0000\u0000\u0000Findings\u0000This study reveals the need for emphasis on the imperative of combating corruption in the distribution of COVID-19 palliatives and establishing economic resilience through transparent and accountable practices, supported by legal frameworks.\u0000\u0000\u0000Research limitations/implications\u0000Rent-seeking and utilitarian theories of law are evaluated because of their impacts on combating corruption. The limitation of this study is the intricacy of gathering data on COVID-19 palliatives corruption in Nigeria because of secrecy and the absence of reliable data on the subject.\u0000\u0000\u0000Practical implications\u0000Estimating the exact number of stolen palliatives and their fiscal impact on Nigeria's economy proves to be a formidable task because of the covert nature of corruption. This study equips policymakers in Nigeria with a better understanding of the legal challenges posed by corruption in the health care sector and provides an effective strategy to combat it.\u0000\u0000\u0000Social implications\u0000The lack of reliable data on the extent of palliative theft hinders the ability of lawmakers to enact effective legislation and strategies for combating corruption in the distribution of COVID-19 palliatives and addressing future emergencies in Nigeria. The policy implications of this study can assist policymakers in Nigeria and other countries in formulating measures to combat corruption in","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43709020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-11DOI: 10.1108/jfc-05-2023-0125
J. J. Nortje, D. Myburgh
Purpose This paper aims to identify impediments, discuss impediments and make recommendations for the impediments during the execution of a search and seizure warrant for digital evidence in South African criminal cases. Design/methodology/approach The discussion of this article, the second article of two, focuses on a literature review of international and local impediments identified in case law and published research literature and how it is approached in various jurisdictions. Findings This study found that impediments identified and addressed internationally during the execution of a search and seizure warrant for digital evidence are relevant to South African criminal cases and still need to be addressed during the execution of a search and seizure warrant for digital evidence in South African criminal cases. Research limitations/implications Although searches and seizures for digital evidence are relevant to civil, regulatory and criminal investigations, this study focuses on the search and seizure for digital evidence in criminal matters with an emphasis on the provisions of the Criminal Procedure Act 51 of 1977 and the Cybercrimes Act 19 of 2020. Originality/value The originality of this paper lies in the procedures followed during the physical search and seizure of digital information during the execution of search and seizure warrants for digital information in South Africa. If the South African Police Service follows the recommended procedures, it will contribute to the success of the South African Police Service, which would result in the improved quality of investigations and successful prosecution of crime in South Africa.
{"title":"Impediments during the execution of a search and seizure warrant for digital information by forensic investigators in South Africa","authors":"J. J. Nortje, D. Myburgh","doi":"10.1108/jfc-05-2023-0125","DOIUrl":"https://doi.org/10.1108/jfc-05-2023-0125","url":null,"abstract":"\u0000Purpose\u0000This paper aims to identify impediments, discuss impediments and make recommendations for the impediments during the execution of a search and seizure warrant for digital evidence in South African criminal cases.\u0000\u0000\u0000Design/methodology/approach\u0000The discussion of this article, the second article of two, focuses on a literature review of international and local impediments identified in case law and published research literature and how it is approached in various jurisdictions.\u0000\u0000\u0000Findings\u0000This study found that impediments identified and addressed internationally during the execution of a search and seizure warrant for digital evidence are relevant to South African criminal cases and still need to be addressed during the execution of a search and seizure warrant for digital evidence in South African criminal cases.\u0000\u0000\u0000Research limitations/implications\u0000Although searches and seizures for digital evidence are relevant to civil, regulatory and criminal investigations, this study focuses on the search and seizure for digital evidence in criminal matters with an emphasis on the provisions of the Criminal Procedure Act 51 of 1977 and the Cybercrimes Act 19 of 2020.\u0000\u0000\u0000Originality/value\u0000The originality of this paper lies in the procedures followed during the physical search and seizure of digital information during the execution of search and seizure warrants for digital information in South Africa. If the South African Police Service follows the recommended procedures, it will contribute to the success of the South African Police Service, which would result in the improved quality of investigations and successful prosecution of crime in South Africa.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45508964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-10DOI: 10.1108/jfc-05-2023-0126
Christopher J. Demaline
Purpose Financial disclosure manipulation is unethical and unlawful because it leads to less transparent reporting and harmful economic decisions based on misleading information. The purpose of this paper is to provide a summary and synthesis of research covering financial disclosure misrepresentation via impression management (IM). Ultimately, this report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. Suggestions for future research are presented. Design/methodology/approach This is an academic literature review covering financial disclosure manipulation. The findings are viewed through the lens of Christian virtue ethics (CVE). Findings IM studies commonly focus on specific methods used to mislead disclosure readers. Antecedent and mitigation strategies are less commonly noted in the research. This paper presents and analyzes IM tools and antecedents. Mitigation approaches are considered through the lens of CVE. This report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. Originality/value This present study focuses on the antecedents of IM in financial disclosures and introduces a novel perspective to financial disclosure mitigation – CVE. Financial disclosure authors and readers, researchers, financial regulators and accounting standards setters may be interested in the findings presented in this study.
{"title":"Financial disclosure manipulation: a virtue ethics perspective","authors":"Christopher J. Demaline","doi":"10.1108/jfc-05-2023-0126","DOIUrl":"https://doi.org/10.1108/jfc-05-2023-0126","url":null,"abstract":"\u0000Purpose\u0000Financial disclosure manipulation is unethical and unlawful because it leads to less transparent reporting and harmful economic decisions based on misleading information. The purpose of this paper is to provide a summary and synthesis of research covering financial disclosure misrepresentation via impression management (IM). Ultimately, this report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. Suggestions for future research are presented.\u0000\u0000\u0000Design/methodology/approach\u0000This is an academic literature review covering financial disclosure manipulation. The findings are viewed through the lens of Christian virtue ethics (CVE).\u0000\u0000\u0000Findings\u0000IM studies commonly focus on specific methods used to mislead disclosure readers. Antecedent and mitigation strategies are less commonly noted in the research. This paper presents and analyzes IM tools and antecedents. Mitigation approaches are considered through the lens of CVE. This report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency.\u0000\u0000\u0000Originality/value\u0000This present study focuses on the antecedents of IM in financial disclosures and introduces a novel perspective to financial disclosure mitigation – CVE. Financial disclosure authors and readers, researchers, financial regulators and accounting standards setters may be interested in the findings presented in this study.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49285849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-08DOI: 10.1108/jfc-05-2023-0124
Wahyu Fahrul Ridho
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.
{"title":"Unmasking online fake job group financial scams: a thematic examination of victim exploitation from perspective of financial behavior","authors":"Wahyu Fahrul Ridho","doi":"10.1108/jfc-05-2023-0124","DOIUrl":"https://doi.org/10.1108/jfc-05-2023-0124","url":null,"abstract":"\u0000Purpose\u0000The 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.\u0000\u0000\u0000Design/methodology/approach\u0000This 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.\u0000\u0000\u0000Findings\u0000This 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.\u0000\u0000\u0000Research limitations/implications\u0000While 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.\u0000\u0000\u0000Practical implications\u0000The 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.\u0000\u0000\u0000Social implications\u0000The 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.\u0000\u0000\u0000Originality/value\u0000This 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.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47820963","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.1108/jfc-05-2023-0118
Chris Heyman
Purpose This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube® (in the form of a live video presentation) exhibits any of the red flags from the checklist. Design/methodology/approach The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes. Findings A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist. Research limitations/implications The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags. Practical implications The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. Social implications The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. Originality/value The study provides a red flag checklist for cryptocurrency Ponzi schemes.
{"title":"A red flag checklist for cryptocurrency Ponzi schemes","authors":"Chris Heyman","doi":"10.1108/jfc-05-2023-0118","DOIUrl":"https://doi.org/10.1108/jfc-05-2023-0118","url":null,"abstract":"\u0000Purpose\u0000This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube® (in the form of a live video presentation) exhibits any of the red flags from the checklist.\u0000\u0000\u0000Design/methodology/approach\u0000The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes.\u0000\u0000\u0000Findings\u0000A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist.\u0000\u0000\u0000Research limitations/implications\u0000The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags.\u0000\u0000\u0000Practical implications\u0000The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.\u0000\u0000\u0000Social implications\u0000The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.\u0000\u0000\u0000Originality/value\u0000The study provides a red flag checklist for cryptocurrency Ponzi schemes.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48048318","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-31DOI: 10.1108/jfc-05-2023-0103
Dewi Nur Maulidiyah
Purpose No country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture. Design/methodology/approach This study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database. Findings Bibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint. Originality/value This research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.
{"title":"Consensus on the role of culture in restraining financial crime: a systematic literature review","authors":"Dewi Nur Maulidiyah","doi":"10.1108/jfc-05-2023-0103","DOIUrl":"https://doi.org/10.1108/jfc-05-2023-0103","url":null,"abstract":"\u0000Purpose\u0000No country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture.\u0000\u0000\u0000Design/methodology/approach\u0000This study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database.\u0000\u0000\u0000Findings\u0000Bibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint.\u0000\u0000\u0000Originality/value\u0000This research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47947749","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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