Differentiating risk factors of Ponzi from non-Ponzi frauds

Vasant Raval · Vivek Raval

10 citations0/0 files storedJournal of Financial Crime

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Securities Regulation and Market Practices Financial Literacy and Behavior Cybercrime and Law Enforcement Studies

Abstract

Purpose This paper aims to analyze the attributes of Ponzi schemes (“Ponzis”) to determine whether they are a unique class of financial fraud. Design/methodology/approach The authors apply the disposition-based fraud model to classify and differentiate the attributes of Ponzis. This classification exercise helps comprehend the distinct drivers of Ponzis. Findings Fraud risk factors of Ponzis are different from those involved in other financial frauds. Four propositions about risk and risk mitigation measures are developed. Research limitations/implications The research approach used is conceptual, not empirical. However, the insights from this exercise should inform how different Ponzis are from other financial frauds and why they should be treated as a separate class for prevention and enforcement. In turn, this may trigger an interest in empirical research focused on the unique risks of Ponzis. Practical implications Knowledge of risk factors unique to Ponzis will permit a consideration of customized risk mitigation measures to prevent or detect Ponzis. Enforcement actions can also become more effective because of a distinct risk-based classification of Ponzis. Social implications The prevention of damage from Ponzis hinges upon how well prospective victims are educated to become aware of signs of Ponzis. This should lead to the more effective protection of investors from victimization from Ponzi schemes. Originality/value The implicit understanding that all financial frauds are alike and that the risk-factors involved are substantially the same across all classes of fraud is challenged. This revelation opens opportunities to add value through focused research on Ponzis as a distinct class of fraud.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 10 citations exist upstream.

References

2011Psychological Pathways to Fraud: Understanding and Preventing Fraud in Organizations 2003Ethics education in accounting: moving toward ethical motivation and ethical behavior 2004Classification and Categorization: A Difference that Makes a Difference 2008Religiosity and Moral Identity: The Mediating Role of Self-Control 2002The personality paradox in offender profiling: A theoretical review of the processes involved in deriving background characteristics from crime scene actions.2013Being “in Control” May Make You Lose Control: The Role of Self-Regulation in Unethical Leadership Behavior 2007Taking Stock of Criminal Profiling 2012New dogs, old tricks. Why do Ponzi schemes succeed?

Cited by

2022Waspada Investasi Ilegal di Indonesia 2023A red flag checklist for cryptocurrency Ponzi schemes

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.