How do economic changes affect the prevalence of fraud?
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Economic changes have a significant impact on the prevalence of fraud. While some changes, such as increased anonymity in financial transactions and disruptions in demands and organizational capital due to events like the COVID-19 pandemic, can facilitate fraud innovations and increase the likelihood of fraud in the short term , other changes over a longer time scale are likely to enhance the use of reputational capital, third-party enforcement, and ethical motivations as deterrents to fraud, ultimately leading to a decrease in fraud incidence . Factors like political stability, economic freedom, poverty, and GDP also play crucial roles in influencing the proliferation of fraud in different countries . Therefore, understanding the complex interplay between economic variables, technological advancements, and institutional structures is essential in combating fraud effectively.
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| Papers (5) | Insight |
|---|---|
17 Citations | Economic changes can impact fraud levels variably; the relationship between recessions and fraud is complex, with some types of fraud potentially increasing while others may decrease during adverse economic conditions. |
3 Citations | Economic changes, like neoliberalism, impact the prevalence of fraud by influencing moral orders and practices globally, challenging traditional distinctions between trustworthy and fraudulent behaviors. |
04 May 2021 | Economic changes impact fraud prevalence; pandemics and crises lead to specific fraud types like online fraud, while economic downturns reveal insolvency-related frauds. |
17 Jun 2021 | Economic variables like political stability, economic freedom, poverty, and GDP significantly impact fraud prevalence in European countries, with political stability being the most influential factor. |
4 Citations | Economic changes, such as increased anonymity and disruptions like the COVID-19 pandemic, can initially foster fraud. However, long-term trends suggest a decrease in fraud due to enhanced deterrents. |
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