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Can you spot a scam? Measuring and improving scam identification ability

Author

Listed:
  • Lisa Spantig

    (RWTH Aachen)

  • Elif Kubilay

    (University of Essex)

  • Jana Cahlíková

    (University of Bonn)

  • Lucy Kaaria

    (University of Nairobi)

  • Eva Raiber

    (Center for Economic Policy Research and Aix Marseille Université Économiques)

Abstract

The recent expansion of digital financial products leads to severe consumer protection issues such as fraud and scams. As these potentially decrease trust in digital services, especially in developing countries, avoiding victimization has become an important policy objective. In an online experiment, we first investigate how well individuals in Kenya identify phone scams using a novel measure of scam identification ability. We then test the effectiveness of scam education, a commonly used approach by banks and institutions for fraud and scam prevention. We find that common tips on how to spot scams do not significantly improve individuals' scam identification ability, for example, the distinction of scams from genuine messages. This null effect is driven by an increase in correctly identified scams and a decrease in correctly identified genuine messages. We interpret this as an increase in caution. In addition, we find suggestive evidence that genuine messages that contain scamlike features are more likely to be misclassified, highlighting the importance of a careful design of official communication.

Suggested Citation

  • Lisa Spantig & Elif Kubilay & Jana Cahlíková & Lucy Kaaria & Eva Raiber, 2023. "Can you spot a scam? Measuring and improving scam identification ability," French Stata Users' Group Meetings 2023 24, Stata Users Group.
  • Handle: RePEc:boc:fsug23:24
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    References listed on IDEAS

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    1. 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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    Cited by:

    1. 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.

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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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