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Vulnerability and fraud: evidence from the COVID-19 pandemic

Author

Listed:
  • Yun Zhang

    (Shanghai Lixin University of Accounting and Finance)

  • Qun Wu

    (University of Nevada)

  • Ting Zhang

    (University of Dayton)

  • Lingxiao Yang

    (Shanghai Lixin University of Accounting and Finance)

Abstract

This study examines consumer fraud at the onset of the COVID-19 pandemic and provides novel evidence for the opportunity model of predatory victimization. Scammers have taken advantage of the COVID-19 pandemic shock to exploit victims who are already vulnerable and suffering. The number of fraud cases has greatly increased as COVID-19 spread across the U.S., consistent with the vulnerable-to-become-victimization hypothesis based on the opportunity model of predatory victimization. A Google Trends analysis shows that the increase in fraud and scams is attributable to victims’ increased vulnerability rather than to their awareness of fraud and increased motivation to report scams. An improvement in financial literacy is associated with the reduction of finance-related fraud and scams. Finally, we provide important policy implications to protect people from fraud victimization.

Suggested Citation

  • Yun Zhang & Qun Wu & Ting Zhang & Lingxiao Yang, 2022. "Vulnerability and fraud: evidence from the COVID-19 pandemic," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:9:y:2022:i:1:d:10.1057_s41599-022-01445-5
    DOI: 10.1057/s41599-022-01445-5
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    References listed on IDEAS

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    Cited by:

    1. Ming Liu & Haomin Wu & Bingxuan Lin & Jingxia Zhang, 2023. "A small global village: the effects of collectivist, tight and Confucian cultures on the spread of COVID-19," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.

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