Predicting susceptibility to cyber-fraud victimhood
| Pages | 277-292 |
| Published date | 07 January 2019 |
| Date | 07 January 2019 |
| DOI | https://doi.org/10.1108/JFC-10-2017-0095 |
| Author | Monica T. Whitty |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Predicting susceptibility to
cyber-fraud victimhood
Monica T. Whitty
Cyber Security Centre, University of Warwick, Coventry, UK,
and Department of Media and Communication, University of Melbourne,
Carlton, Australia
Abstract
Purpose –This paper aims to develop a theoretical framework to predict susceptibility to cyber-fraud
victimhood.
Design/methodology/approach –A survey was constructed to examine whether personality, socio-
demographic characteristics and online routine activities predicted one-off and repeat victimhood of cyber-
fraud. Overall,11,780 participants completeda survey (one-off victims, N= 728; repeat victims= 329).
Findings –The final saturated model revealed that psychological and socio-demographic characteristics
and online routine activities should be considered when predicting victimhood. Consistent with the
hypotheses, victims of cyber-frauds were more likely to be older, score high on impulsivity measures of
urgency and sensation seeking, score high on addictive measures and engage in more frequent routine
activities thatplace them at great risk of becoming scammed. There waslittle distinction between one-off and
repeat victimsof cyber-frauds.
Originality/value –This work uniquely combines psychological, socio-demographic and online
behaviours to develop a comprehensive theoretical framework to predict susceptibility to cyber-frauds.
Importantly, the work here challenges the current utility of government websites to protect users from
becoming scammed and providesinsights into methods that might be used to protect users from becoming
scammed.
Keywords Cyber-security, Routine activity theory, Personality, Cyber-fraud, Internet-security,
Scams
Paper type Research paper
1. Introduction
Cyber-frauds (also referred to as cyber-scams) are any type of fraud that exploits mass
communication technologies(e.g. email, Instant Messenger, social networking sites) to trick
people out of money (Whitty, 2015a). Examples include: foreign lotteries and sweepstakes
(in which the victim believes theyhave won money from a lottery and are told to pay a fee to
release the funds), 419 scams (advance fee fraud, in which victims believe that for a small
amount of money they will make a large fortune) and romance scams (taken in by a fake
online dating persona, in which the victim sends the ‘fake persona’money). According to
governmental and academic reports, the numbers of scam victims appear to be on the
© Monica T. Whitty. Published by Emerald Publishing Limited. This article is published under the
Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and
create derivative works of this article (for both commercial and non-commercial purposes), subject to
full attribution to the original publication and authors. The full terms of this licence may be seen at
http://creativecommons.org/licences/by/4.0/legalcode
The work reported in this paper was supported by the Engineering and Physical Sciences
Research Council [EP/N028112/1].
Cyber-fraud
277
Journalof Financial Crime
Vol.26 No. 1, 2019
pp. 277-292
EmeraldPublishing Limited
1359-0790
DOI 10.1108/JFC-10-2017-0095
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1359-0790.htm
increase on a global scale (ACCC, 2016;NFA, 2013;ONS,2016a,2016b Whitty, 2015a,Whitty
and Buchanan, 2012). In the UK in 2016, it was reported in the England and Wales Crime
Survey that citizens are 10 times more likely to be robbed while at their computer by a
criminal based overseas than to fall victim of traditional theft (ONS, 2016a). In 2015,
Australians lost over AU$229m to scams, with 105,200 scam complaints.This amount was
a 15 per cent increase from 2014. The National Fraud Authority (NFA, 2013) in the UK
estimated that fraudcosts in the UK equate to over £52bn a year.
Of further concern to the numbers of overall victims, is the number of victims who
become ‘repeat victims’of cyber-frauds. In 2016, the Office for National Statistics reported
that in the UK 16 per cent of fraud victims became re-scammed within the same 12-month
crime reference period (ONS, 2016a). In a representative sample of 2,000 UK adults, it was
found that in 2012, approximately800,000 UK adults were defrauded by cyber-frauds in the
UK and about a quarter (26 per cent) of these victims were repeat victims during their
lifetime (Whitty, 2015a). Understanding why people are repeatedly scammed online is
critical, given that these victims often suffer both financial and psychological harms
(Button, et al., 2014;Whitty, 2015a;Whitty and Buchanan, 2016). By studying one-off and
repeat victims of cyber-frauds,we might be able to develop methods to substantially reduce
the rates of this particular crime.
The research presented in this paper draws from psychological and criminological
theories to examine the predictors of cyber-fraud victimhood. In particular, the research
focusses on psychologicaland socio-demographic characteristics and online behavioursthat
might place individuals at risk of becominga victim of a cyber-fraud. In addition, the work
examines whether there are dispositional and/or behavioural differences between one-off
and repeat victims.
1.1 Victims’psychological profile
There has been some speculationabout the distinctive psychological characteristicsof fraud
victims, in general. Titusand Gover (2001) believe that victims of fraud are more likely to be:
co-operative, greedy, gullible/uncritical, careless, susceptible to flattery, easily intimidated,
risk takers, generous, hold respect for authority and are good citizens. Fischer, Lea and
Evans (2013), found in their survey research that scam victims or near scam victims were
more affected by the high valuesoffered in scams and displayed a high degree of trust in the
scammers. Holtfreter et al. (2008) found that self-control is a significant predictor of
victimisation. Buchanan and Whitty (2014) found in their research on romance scams that
individuals with a higher tendency towards idealisation of romantic partners were more
likely to be scammed. Whitty(2013) has theorised that romance scam victims are addicted to
the scam. Whilst more researchis needed in this area, the current work suggests some merit
in considering whether personal dispositions predict cyber-fraud victimhood. The first
hypothesis is as follows:
H1. Victims of cyber-frauds are likely to significantly differ on psychological
characteristicscompared with non-victims of cyber-frauds.
Drawing from the previous literature on scamming compliance behaviour and the research
on behaviours related to certain personality dispositions, the following psychological
characteristics were examined: impulsivity, locus of control and addictive disposition.
Impulsivity was examined given that much of the literature that theoriseswhy individuals
become defrauded highlightsthe use of the scarcity tactic used by criminals and their push
for urgency to respond to a crisis (Lea,et al.,2009;Whitty, 2013). Victims of scams, therefore,
might be more likely to respond to pushes to respond quickly withoutchecking facts and be
JFC
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