The paradox of emotional intelligence: How resource scarcity and emotion regulation facilitate consumer fraud

Consumer fraud has become a growing challenge for businesses, eroding trust in marketplace transactions. While prior research has linked perceived resource scarcity to an increased likelihood of fraudulent behavior, the psychological mechanisms behind this relationship remain underexplored. Drawing on the dual-process theory of moral decision-making, this research examines how perceived resource scarcity and emotional intelligence jointly influence consumer fraud. Across six experimental studies, we find that consumers experiencing resource scarcity who possess high emotional intelligence demonstrate greater propensity toward fraudulent actions. This relationship operates through a reduction in embarrassment, which weakens the affective constraints on fraudulent conduct. By unveiling the paradoxical role of emotional intelligence in facilitating unethical behavior under resource scarcity, this research advances theoretical understanding of moral decision-making in consumer contexts and offers actionable insights for organizations aiming to mitigate consumer fraud.