The Fiscal Ramifications of Fraud - New Trends and Dimensions

New fraud trends and dimensions have emerged due to the fast-paced evolution of the digital ecosystem, posing particular difficulties for stakeholders. This research examines new dimensions of fraud, specifically, whether financial losses from fraud are greater when it involves cryptocurrencies than traditional means like bank transfers and credit cards. This study aimed to investigate the financial effects and outcomes of fraud in these specific fields. In addition, the study evaluated influencer marketing and NFT (Non-Fungible Token) fraud trends. The study employed a quantitative design. The authors used descriptive statistics to check trends, while an ANOVA test was used to check whether there were mean differences. Only bank transfers registered a higher amount lost than cryptocurrency, according to descriptive statistics; the other payment methods - cash or cash advances, checks, credit cards, debit cards, gift cards or reload cards, money orders, payment apps, and wire transfers - all registered losses that were significantly lower than cryptocurrency's total loss. However, a posthoc test used after an ANOVA reveals no significant difference in the amount lost between cryptocurrency and the other payment methods. The investigation also showed that, between 2019 and 2021, the majority of Instagram mega-influencers with more than a million international followers used fraudulent practices to fictitiously increase their engagement and follower counts. Mega-fraudsters made up 66.77% of all influencers in 2020; by 2021, that percentage had fallen to about 62.87%. In 2021, fraud was committed by influencers to the tune of 49.23% on average. Between 2020 and 2021, there was also a rising trend in NFT fraud. Loss of stakeholder funds, the obliteration of revenue streams, and the erosion of confidence are a few consequences of new fraud tendencies. Preventive measures are needed, such as improved verification processes, open policies, and industry collaboration, to lessen these risks and ensure the influencer marketing ecosystem's long-term viability.