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Financial fraud in developing countries: Common scam detection tips do not help distinguish scam from non-scam messages

Author

Listed:
  • Elif Kubilay
  • Eva Raiber
  • Lisa Spantig
  • Jana Cahlíková
  • Lucy Kaaria

Abstract

The expansion of digital financial services raises serious consumer protection concerns, including fraud, especially in developing countries. This column reports findings from an online experiment in Kenya which suggest that conventional scam detection tips do not improve individuals' ability to distinguish between scams and genuine messages. Rather, they make people over-cautious – a result partly driven by official communication often including scam markers.

Suggested Citation

  • Elif Kubilay & Eva Raiber & Lisa Spantig & Jana Cahlíková & Lucy Kaaria, 2023. "Financial fraud in developing countries: Common scam detection tips do not help distinguish scam from non-scam messages," ECONtribute Policy Brief Series 056, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkpbs:056
    as

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    File URL: https://www.econtribute.de/RePEc/ajk/ajkpbs/ECONtribute_PB_056_2023.pdf
    File Function: First version, 2023
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    References listed on IDEAS

    as
    1. Kubilay, Elif & Raiber, Eva & Spantig, Lisa & Cahlíková, Jana & Kaaria, Lucy, 2023. "Can you spot a scam? Measuring and improving scam identification ability," Journal of Development Economics, Elsevier, vol. 165(C).
    2. Seth Garz & Xavier Gine & Dean Karlan & Rafe Mazer & Caitlin Sanford & Jonathan Zinman, 2021. "Consumer Protection for Financial Inclusion in Low- and Middle-Income Countries: Bridging Regulator and Academic Perspectives," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 219-246, November.
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    5. He, Daixin & Lu, Fangwen & Yang, Jianan, 2023. "Impact of self- or social-regarding health messages: Experimental evidence based on antibiotics purchases," Journal of Development Economics, Elsevier, vol. 163(C).
    6. Burke, Jeremy & Kieffer, Christine & Mottola, Gary & Perez-Arce, Francisco, 2022. "Can educational interventions reduce susceptibility to financial fraud?," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 250-266.
    7. Dustan, Andrew & Hernandez-Agramonte, Juan Manuel & Maldonado, Stanislao, 2023. "Motivating bureaucrats with behavioral insights when state capacity is weak: Evidence from large-scale field experiments in Peru," Journal of Development Economics, Elsevier, vol. 160(C).
    8. Marguerite DeLiema & Martha Deevy & Annamaria Lusardi & Olivia S Mitchell & Deborah Carr, 2020. "Financial Fraud Among Older Americans: Evidence and Implications," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 75(4), pages 861-868.
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