Unmasking online fake job group financial scams: a thematic examination of victim exploitation from perspective of financial behavior
| Date | 08 August 2023 |
| Pages | 748-758 |
| DOI | https://doi.org/10.1108/JFC-05-2023-0124 |
| Published date | 08 August 2023 |
| Author | Wahyu Fahrul Ridho |
Unmasking online fake job group
financial scams: a thematic
examination of victim
exploitation from perspective
of financial behavior
Wahyu Fahrul Ridho
Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya, Indonesia
Abstract
Purpose –The purpose of this study isto critically examine a prevalent online scam mechanism, withthe
aim of understanding its exploitation of behavioral finance principles and group dynamics and propose
effectivecountermeasures.
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 providea detailed exploration of the scam’s operations.
Findings –This research uncovers the strategic use of four key principles: loss aversion, overconfidence,
scarcity bias and socialproof, within the scam operation. These tendencies are manipulated to inducevictims
to progressivelyinvest into the fraudulent scheme, even amid growingsuspicions.
Research limitations/implications –While the research elucidates on the workings of one specific
online scam, it is necessaryto explore if and how these principles are used in variousother online fraudulent
schemes,to developcomprehensive 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
preventingsuch scams.
Social implications –The research emphasizes the need for collective action in ensuring a safe online
space. This involves the individualuser’s prudence, businesses’proactive education initiativesand stringent
legal actionsagainst 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
instrumentalin formulating effective preventive strategies.
Keywords Online scams, Behavioral finance, Group dynamics, Loss aversion, Overconfidence,
Scarcity bias, Social proof
Paper type Case study
Introduction
In the era of rapidly progressing digital technology, cyber frauds or cyber scams have
grown increasingly prevalent. Cyber financial scams, a specialized form of these cyber
frauds, exploit various internet communication technologies, including Social Networking
Sites, Messengers and e-mails (Whitty and Buchanan, 2016). The losses incurred by these
cyber financial scams has reportedly risenby 125% year on year reaching $27.6bn, with an
JFC
31,3
748
Journalof Financial Crime
Vol.31 No. 3, 2024
pp. 748-758
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-05-2023-0124
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
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