The rising phenomenon of financial scams: evidence from Japan
| Pages | 387-396 |
| DOI | https://doi.org/10.1108/JFC-05-2019-0057 |
| Published date | 28 January 2020 |
| Date | 28 January 2020 |
| Author | Yoshihiko Kadoya,Mostafa Saidur Rahim Khan,Tomomi Yamane |
| Subject Matter | Financial crime,Accounting & Finance,Financial risk/company failure |
The rising phenomenon of
financial scams: evidence
from Japan
Yoshihiko Kadoya and Mostafa Saidur Rahim Khan
School of Economics, Hiroshima University –Higashihiroshima Campus,
Higashihiroshima, Japan, and
Tomomi Yamane
Center for the Study of International Cooperation in Education, Hiroshima
University –Higashihiroshima Campus, Higashihiroshima, Japan
Abstract
Purpose –This study aims to examine the demographic, socio-economicand personality determinants of
financialscams.
Design/methodology/approach –This study uses data on scams collected in Hiroshima prefecture in
Japan for the analysisand analyzes using the logit regression model.
Findings –The results show that the current level of financialdissatisfaction 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 personalitytrait that increases the probability of being a victim of a financial scam.
Research limitations/implications –Overall, the results suggest that people with low
conscientiousnesscould be easy targets of financial scams and financially dissatisfiedpeople could engage in
potentiallyrisky and fraudulent projects.
Originality/value –Financial scams are a long-standing concern for Japan. Every year, an increasing
number of financialscams are being reported, though there are very few empirical studies examining victims’
profiles andother determining factors.
Keywords Japan, Personality traits, Socio-economic factors, Financial scam
Paper type Research paper
Introduction
Financial fraud is one of the fastest-growing crimes in industrialized countries. Broadly
defined, a financial scam occurs when someone illegally or improperly uses a vulnerable
citizen’s money or property. With improvements in the financial sectors of developed
countries, financial productssuch as stock portfolios, mutual funds, bank savings schemes,
insurance policies and so on proliferated. However, the institutional background restrains
sellers from abusing the purchasers of many of these products. Financial products such as
real estate investments, investment in fictitious assets, betting, lotteries and so on lack the
institutional background that protects buyers. Buyers usually have no legal protection
unless they are cheated. Sellers of these products often make very lucrative offers and
This work is supported by JSPS KAKENHI Grant Numbers 15KK0083, 15K17075, 19K13739, 19K13684
and RISTEX, JST.
Declaration of interest statement: There is no conflictofinteresttodeclare.
Phenomenon
of financial
scams
387
Journalof Financial Crime
Vol.27 No. 2, 2020
pp. 387-396
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-05-2019-0057
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