Purpose This paper aims to explore attacks on the decentralized finance (DeFi) ecosystem through the case of flash loan attacks (FLAs). FLAs use flash loans, a novel form of lending developed in the DeFi ecosystem, to steal cryptocurrency assets. FLAs have been identified as serious emergent threats to the DeFi ecosystem with the potential to cause significant financial losses. Design/methodology/approach The paper used data from a massive on-chain analysis to identify all FLAs on seven major blockchains between February 2020 and July 2024, an analysis of public discussions of FLAs and an interview with a victimized platform. Findings The paper identified 254 successful attacks on the DeFi ecosystem resulting in losses of US$ 6.568bn. 72 of these were FLAs, resulting in losses of US$ 1.211bn. It identified 14 different types of FLA that either ‘manipulated price feeds’ (MPF attacks) or ‘exploited (flaws in) the underlying protocol logic’ of platforms in various ways (EUPL attacks). The analysis revealed distinctive temporal patterns of FLA activity. Originality/value Crimes targeting the DeFi ecosystem have grown significantly, producing a growing literature primarily from cybersecurity and cognate perspectives. This is true of the limited FLA literature to date. Despite an emergent interest in cryptocurrencies and the advocacy of criminological contributions, very little is known about attacks on the DeFi ecosystem from a criminological perspective. This paper aimed to extend understandings of FLAs specifically, and crimes targeting the DeFi ecosystem more generally, by applying a criminological lens for the first time to FLAs.
Purpose This paper aims to examine crypto-asset tax evasion in emerging markets as a financial crime control problem, rather than a conventional tax-collection issue. It considers how jurisdictions can use information reported and exchanged under the OECD Crypto-Asset Reporting Framework (CARF) to link reported transactions to taxpayers, select audit cases and enforce tax claims. Design/methodology/approach The paper develops a conceptual and comparative policy analysis, drawing on fraud theory, crypto-tax scholarship, tax-compliance theory, CARF materials and selected implementation developments in the United Kingdom, Singapore, Hong Kong and Vietnam. Findings Crypto wealth can move outside routine tax reporting through offshore virtual asset service providers, self-custody migration, stablecoin parking, peer-to-peer cash-out and nominee or third-party accounts. CARF improves cross-border reporting, but reported data does not by itself establish attribution, liability or intent. It must be matched to taxpayers and assessed against indicators of deliberate omission, misrepresentation and concealment before it can support audit, recovery or sanctions. Research limitations/implications The paper does not estimate the scale of crypto-tax evasion. Future research should test the typology and enforcement sequence using taxpayer-level, platform-level and audit data where available. Practical implications Emerging-market tax authorities should coordinate market recognition, tax classification, domestic reporting duties, CARF exchange, data integration and enforcement-escalation thresholds through a sequenced enforcement model. Originality/value The paper contributes a typology of crypto-asset tax concealment, a CARF-readiness gap matrix and a graduated enforcement model that distinguishes legal uncertainty, negligent non-reporting, deliberate tax evasion and aggravated or organised crypto-enabled tax crime.
Purpose There is a growing debate about the use of cryptocurrencies to evade sanctions. This paper aims to systematically collect and organize the available literature on cryptocurrencies and sanctions evasion. The aim is to map the debate, identify gaps and clarify the implications for global governance and the international order. Design/methodology/approach This research conducted a systematic literature review using a keyword-string search method across relevant databases. Due to limited peer-reviewed literature, additional “grey” literature was included to broaden the evidence base. Findings The mapping reveals a fragmented debate over a strong link between cryptocurrencies and sanctions evasion grounded in cryptocurrencies’ design features. It identifies three main gaps concerning the scale of this form of evasion, the mechanisms through which it operates, and whether it represents a novel challenge or a reconfiguration of established practices under new technical infrastructure. Further research on these issues would contribute to an enhanced understanding of sovereignty, global governance and power. Originality/value While much of the literature on cryptocurrencies and illicit finance has centred on money laundering, their role in sanctions evasion remains underexplored. To the best of the authors’ knowledge, this paper provides the first systematic consolidation of the dispersed academic and policy literature on the topic. It brings together peer-reviewed research and verified grey literature into a consolidated evidence base that can serve as a stepping stone for future debates and research on cryptocurrency-enabled sanctions evasion.
Purpose The growing involvement of cryptocurrency in criminal activities poses unique challenges and opportunities for economic crime investigations. This study aims to examine the structure and operations of darknet drug markets and their connections to organized crime, with a focus on an empirical analysis of cryptocurrency usage. Design/methodology/approach Using a software-as-a-service analytics platform and a cryptocurrency investigation tool, 100 darknet drug market cases active during 2023 were analyzed, focusing on 36 trackable cryptocurrency addresses. Findings The analysis identified three cryptocurrency addresses and darknet marketplaces with concentrated usage in the darknet drug ecosystem during 2023. These Bitcoin addresses were also associated with potential ties to various criminal activities such as money laundering, fraud and ransomware, highlighting the associations between darknet drug markets and criminal individuals, groups or organizations. Originality/value This study contributes to the drug trafficking and financial crime literature by empirically mapping the connections between darknet drug marketplaces and organized crime through cryptocurrency transaction analysis. Unlike prior research, which often focused on qualitative insights or law enforcement case studies, this study uses systematically collected transaction-level data to highlight patterns in financial flows and illicit network structures. The findings offer insights into the operational structures and illicit activities in darknet drug marketplaces and call for further understanding in cryptocurrency-enabled financial crimes.
Purpose This paper aims to examine the Swiss Paradox and bias of dominant global indices, such as Transparency International, despite Switzerland being among the leading safe havens for illicit wealth. The paper argues that while corruption is widespread in Africa, countries in the Global North, including Switzerland, are enablers and accomplices in transferring illicit wealth. Additionally, the paper uses the concept of Afropolitanism to challenge the Western-centric narrative of corruption in Africa. It aims to contribute to the literature by questioning the narrative that “safe haven” countries are the least corrupt. Design/methodology/approach The paper uses a desktop methodological approach, drawing from existing literature on the subject, African case studies, asset recovery measures, and various corruption indices. Findings The analysis conducted in this paper suggests that although some illicit funds from African states may have been recovered, Africa’s perception of Afropolitanism should be used to inform and gauge African corruption, rather than relying on biased Western-oriented indices that seem to stigmatise corruption in Africa. Practical implications This study advances the view that corruption is not endemic to a particular region or country. Social implications This study changes the narrative about how one should view and appreciate the global corruption indices. Originality/value The value of the contribution lies in its effort to reassess the issue of African corruption through the perspective of global corruption indices and to demonstrate the potential of the Swiss Paradox.
PurposeFraud among young adults is a highly prevalent issue, yet there has been limited research in this context. This study aims to investigate the behavioural factors influencing online fraud victimisation among young adults. Design/methodology/approachGrounded in temporal discounting theory, the study analyses how behavioural traits such as self-control, sensation-seeking and premeditation mediate the effects of age and time spent online on fraud vulnerability. Using a sample of 515 participants aged 15–30 years from the Delhi Metropolitan Region, India, we analysed how their age and online habits influence, or are influenced by, their behaviours: self-control, sensation-seeking and premeditation. FindingsResults of our study suggested that a multi-faceted and complex pathway to victimisation exists, wherein the victim is aware of their actions yet still falls prey to fraud due to poor self-regulation. Self-control emerged as a consistent mediator across all age groups, whereas sensation-seeking did not. Premeditation decreased with age, but did not mediate fraud occurrence. Those falling in the 21–30 years age group experienced a greater impact of time spent online on fraud victimisation. Originality/valueThis study emphasises the importance of fostering behavioural control and creating protective measures and interventions targeted to each age group. We introduce the novel concept of conscious vulnerability – a condition where individuals knowingly engage with fraudulent content despite being aware of potential risks.
Purpose This study aims to examine dimensionality reduction techniques – principal component analysis (PCA), linear discriminant analysis (LDA) and t-distributed stochastic neighbor embedding (t-SNE) – and their application in detecting financial crime. The objective is to demonstrate how these methods address feature correlations, reduce data complexity and retain critical fraud indicators in high-dimensional data sets. Design/methodology/approach This study reviews the principles and challenges of PCA, LDA and t-SNE and applies them to a real-world data set of financial crime cases drawn from the SEC’s Accounting and Auditing Enforcement Releases. Models are trained and evaluated using stratified cross-validation, with performance compared across dimensionality reduction methods using multiple metrics. Findings Results indicate that PCA provides efficient linear reduction while preserving variance, LDA enhances supervised classification by maximizing class separability and t-SNE uncovers local patterns useful for anomaly detection. Together, these methods demonstrate measurable improvements in interpretability, computational efficiency and fraud detection performance. Originality/value This paper extends prior work by offering a comparative analysis of PCA, LDA and t-SNE in financial crime detection, bridging theoretical foundations with practical application. It highlights the implications for regulators and auditors, providing a replicable framework for applying dimensionality reduction in fraud analytics.
Purpose This paper aims to examine how the emergence of cryptocurrency introduces novel violent crime typologies, such as “wrench attacks,” where offenders use physical coercion to compel victims to transfer digital assets, and how crypto’s characteristics disrupt Rational Choice Theory’s (RCT) risk/reward balance. Design/methodology/approach This is a conceptual paper integrating literature on offender decision-making, cyber-physical crime and historical crime harvests (Pease, 1997) within the RCT framework, comparing crypto-enabled extortion to non-crypto equivalents. Findings Cryptocurrency enables asset transfers that are attractive for criminals, amplifying perceived rewards while mitigating risks, unlike traditional cash-based extortion. By making high-risk offenses more appealing, crypto has presented a new “crime harvest.” Rather than invalidating RCT, this paper identifies specific boundary conditions under which its core variables are most susceptible to disruption and offers four testable propositions to guide future empirical inquiry. Originality/value This paper specifies conditions under which crypto disrupts RCT’s risk/reward calculus, offers testable propositions for hybrid opportunity structures and presents wrench-attack-specific policy recommendations through emerging regulatory frameworks (EU Markets in Crypto-Assets; UK Financial Services and Markets Act 2023).
Purpose Familial identity theft occurs when a family member steals the identity of another family member and is a problem in the USA. The purpose of this study was to explore the lived experiences of familial identity theft victims. Design/methodology/approach This qualitative study was framed using a phenomenological approach. Interview data were obtained from a purposive sample of nine participants. Data were analyzed using constant comparison, classical content analysis and word count. Findings Key findings included “Offender Mental Health Concerns” and “Victim Emotional Effects” were the most salient themes as they were present for all participants. Other themes included “Polyvictimization,” “Recovery” and “Relational Impacts.” Research limitations/implications Data were collected from mostly highly educated, White, married individuals who had their identity stolen by a parent. Findings could inform the development of survey items that measure impacts of familial identity theft victimization. Practical implications Findings indicate familial identity theft victims often seek support from mental health professionals; therefore, these findings could be used to develop or enhance existing training for these professionals. Social implications Findings from this study provide needed insights on an often-overlooked problem that can have serious financial, emotional and relational consequences for victims and their families. Originality/value This is the first known qualitative study on familial identity theft victimization that used methodological triangulation to determine findings.
Purpose This paper aims to investigate the effect of fraud factors on financial statements. Design/methodology/approach Based on a sample of 98 French firms listed on the SBF 120 stock market over the period from 2015 to 2023, this paper uses a probit regression to explore the dynamics of fraud detection. Findings The results indicate that fraud in French firms is not solely a problem of companies in distress. Instead, it can be driven by pressure to maintain growth, investor expectations or exploit opportunities arising from rapid asset expansion. The findings also show that reduced external scrutiny associated with a lower need for capital could create greater opportunities for management to manipulate financial statements. However, strong and independent oversight enhance accountability and reduce opportunities for manipulation. Audit tenure and CEO narcissism do not have a significant direct link to fraud. Practical implications This paper has several implications for regulators and auditors. Regulators are increasingly aware of the need to implement stricter oversight mechanisms, enhance whistleblower protections and design more effective compliance programs to detect and deter fraudulent activity. Similarly, auditors must exercise heightened vigilance when auditing high-performing firms with limited external financing, as these conditions may mask underlying financial misreporting. Originality/value This paper uses a comprehensive approach to examine the contextual factors influencing the occurrence of fraudulent financial statements, with a particular focus on French context, which is characterized by unique corporate governance structures and specific financial regulations.
Purpose This study aims to explore how visceral factors, financial knowledge and trust affect young adults in Malaysia in terms of falling for investment scams. Design/methodology/approach Based on the elaboration likelihood model, this research used a cross-sectional survey. Data was gathered from 511 young adults in the Klang Valley through an online questionnaire shared on social media and in public places. The data were analysed using structural equation modelling. Findings The results show that visceral influences directly increase the chances of falling for investment scams. Financial literacy and trusting behaviour did not have a direct effect, but they significantly influenced susceptibility indirectly through visceral factors. This highlights the critical role of emotions and situations in scam vulnerability. Research limitations/implications The study focuses only on Malaysian young adults, so the results might not apply to other groups. The findings suggest the need for targeted education that not only improves financial literacy but also helps manage emotions and develop critical thinking skills. Originality/value This research adds to the limited studies on scam vulnerability among young adults in developing countries. By identifying visceral influences as a key factor, it provides new insight into the psychological mechanisms behind scam victimisation.
Purpose This study aims to examine the roles of utilitarian, hedonic and social motivation in shaping user satisfaction and continuance usage intention for FinTech applications. It also investigates whether cyber fraud experience moderate the satisfaction–continuance relationship. Design/methodology/approach Data were obtained through an online survey distributed on social networking sites. A total of 243 valid responses from FinTech users were analysed using partial least squares structural equation modelling with SmartPLS. Findings The results show that utilitarian (B = 0.474, p = 0.000) and social (B = 0.231, p = 0.000) motivation significantly enhance user satisfaction, which, in turn, drives continuance intention (B = 0.686, p = 0.000). However, hedonic motivation (B = 0.036, p = 0.505) has no significant influence on satisfaction. Moreover, users’ experiences of cyber fraud (B = 0.011, p = 0.903) do not moderate the relationship between satisfaction and continuance intention. Research limitations/implications As the study used convenience sampling, findings may have limited generalisability. The cross-sectional design limits its ability to establish causality between motivation, satisfaction and continuance intentions. For practitioners, the findings underscore the importance of prioritising functional value and social reinforcement when designing FinTech services. Originality/value This study contributes by revealing that FinTech users’ post adoption satisfaction is primarily driven by application’s utility and its acceptance among peers, while hedonic attributes do not play a significant role. Furthermore, prior cyber fraud experience does not affect user intention of continuous use, indicates possible risk normalisation within the digital financial ecosystem. By linking post-adoption behaviour with exposure to financial crime, the study extends the application of technology acceptance and consumer behaviour theories in fraud prone FinTech environments.
Purpose This study aims to examine factors influencing the fraudulent intention among bankers in Bangladesh through the lens of fraud star theory. Design/methodology/approach To attain the objectives of this empirical study, 397 usable responses were collected from the Bangladeshi Bankers through the structured questionnaire survey. This study used the partial least squares structural equation modeling to infer the hypothetical relations. Findings The findings revealed that six of the seven fraud star dimensions, i.e. the incentive, opportunity, rationalization, internal scope, external scope and organizational culture, have a positive effect on the intention of the bankers toward fraud. The dimension of capacity, however, showed no significant effect. Research limitations/implications Theoretically, this research helps advance the study of fraud by offering one of the first attempts to empirically validate the fraud star model in an emerging economy. In practice, the research findings necessitate the need to enhance internal auditing, external supervision and the development of ethical organizational cultures as methods to prevent malpractice in the Bangladesh banking system. Originality/value To the best of the authors’ knowledge, the work is one of the first to provide empirical validation of the fraud star theory, which gives a comprehensive, multidimensional perspective that incorporates personal, business and societal aspects of fraud.
Purpose This study aims to explore how Botswana’s tax authorities address sophisticated money laundering through churches, examining their detection and intervention strategies. Design/methodology/approach This paper opted for a qualitative research framework, specifically utilising purposive interviews with a sample of eight officials of the Botswana Unified Revenue Service (BURS). The methodological choice was strategically made to elicit in-depth insights into the tax authorities’ methodologies and the complexities encountered in addressing money laundering. Findings Research demonstrates that money launderers often exploit Pentecostal churches to conceal illicit funds, leveraging their perceived legitimacy and lax financial oversight. It also finds that current anti-money laundering (AML) strategies are insufficient, emphasising the critical need for integrating digital transformation tools to enhance detection and intervention. Practical implications The study highlights the need for advanced digital tools and stricter oversight in AML frameworks to better detect and prevent financial crimes involving religious organisations. Originality/value This paper offers pioneering insights into money laundering within religious organisations, with a focus on Pentecostal churches in Botswana. It critically analyses the BURS strategies, establishes a historical record and lays the foundation for future research in corporate governance and AML practices. By addressing a significant gap in the discourse, it advocates for enhanced AML measures and a deeper understanding of the role of religious institutions in financial crime.
Purpose This study aims to examine the psychological, psychographic and socio-economic factors influencing individuals’ intentions to click on phishing emails while focusing on emotional traits as well as contextual elements. Design/methodology/approach A dual-method deductive approach was used, combining partial least squares structural equation modelling and fuzzy set qualitative comparative analysis (fsQCA). Data were collected using a purposive sampling method through five-point Likert scales from 385 digital natives. Findings Psychological and psychographic factors have a stronger influence on phishing susceptibility than socio-economic factors. Anxiety increases vulnerability, while risk tolerance is the key driver. Perceived value heightens susceptibility through the appeal of rewards. Financial status has limited impact, and neuroticism offers protection via increased vigilance. fsQCA reveals interactions among factors, with risk tolerance consistently present across configurations. Practical implications The findings emphasise addressing emotional and psychographic vulnerabilities in phishing susceptibility. Banks should use clear, reassuring communication and step-by-step guidance to curb impulsive actions. Technology providers must create behavioural nudges and advanced email filters to identify high-risk messages. Tailored phishing simulations and intervention tools can enhance user vigilance and digital literacy, particularly for risk-tolerant and impressionable individuals. Originality/value This study contributes by integrating psychological, psychographic and contextual perspectives and challenges assumptions about self-efficacy and financial status in phishing susceptibility. Additionally, combining protection motivation theory and dual-process theory with fsQCA offers valuable methodological and theoretical insights for a comprehensive understanding of phishing vulnerability.
Purpose This paper aims to examine how the Oyo State Command of the Nigerian Security and Civil Defence Corps (NSCDC) investigates and prosecutes fraud cases, the common fraud types encountered and the challenges faced. It addresses a key research gap by shifting attention from high-profile agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to the grassroots role of the NSCDC in everyday fraud control. Design/methodology/approach An exploratory qualitative design was adopted, involving the review of 27 prosecuted fraud cases with all seven detectives in the Oyo State NSCDC Anti-Fraud Unit. Data were subjected to content analysis. Findings The NSCDC primarily investigates cases of Obtaining by False Pretense (OBT) and Visa Racketeering (VR). Detectives rely on community intelligence, evidence gathering and mediation. Some victims of fraud reportedly preferred restitution over prosecution due to costs and delays. Challenges to fraud prosecution faced by the NSCDC included limited funding, inadequate tools and weak interagency collaboration. Research limitations/implications The results of this study are useful for making practical interventions by the appropriate authorities to provide NSCDC with sufficient funding to improve its capacity to investigate and prosecute fraud cases using modern technologies. Practical implications By investigating fraud prosecution in Oyo State NSCDC command, this study provides insights into fraud investigation, its prosecution and the challenges confronting the agency. Originality/value To the best of authors’ knowledge, this is the first study conducted on the NSCDC’s Anti-Fraud Unit, offering insights into the activities of this agency in anti-fraud prosecution. It extends criminological debates by showing how fraud theories operate in resource-scarce environments and highlights policy needs for sustainable funding, interagency cooperation and forensic modernization.
Purpose This study aims to review systematically over ten years of journal articles on phone scams to understand why people from all walks of life fall prey to phone scams and how important it is to devise effective prevention strategies to minimize the incidents of scams. Design/methodology/approach Guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses statement review method, a systematic review of the Scopus, Web of Sciences and Google Scholar databases was conducted, resulting in 23 relevant studies published between 2014 and 2024. Findings An in-depth analysis of the selected articles uncovered five primary themes: the interpretation of phone scams, scamming techniques, scam vulnerability, reporting attitudes and self-protection practices. An integrated, multi-stakeholder approach is essential to effectively combat phone scams, enhance consumer protection and build societal resilience against evolving fraud tactics. Originality/value Phone scam operations represent a form of impersonation fraud, usually use artificial intelligence technologies and sophisticated social engineering methods to deceive the victims. This study emphasizes the significance of self-protection measures as a way of protecting oneself against phone scams, as no individual is immune to such scams.
