The Fiscal Ramifications of Fraud - New Trends and Dimensions

Roxana Adriana Mititelu and Bogdan Florian Amzuica
Additional contact information
Roxana Adriana Mititelu: Bucharest University of Economic Studies, Bucharest, Romania
Bogdan Florian Amzuica: Bucharest University of Economic Studies, Bucharest, Romania

Oblik i finansi, 2024, issue 3, 87-95

Abstract: New fraud trends and dimensions have emerged due to the fast-paced evolution of the digital ecosystem, posing particular difficulties for stakeholders. This research examines new dimensions of fraud, specifically, whether financial losses from fraud are greater when it involves cryptocurrencies than traditional means like bank transfers and credit cards. This study aimed to investigate the financial effects and outcomes of fraud in these specific fields. In addition, the study evaluated influencer marketing and NFT (Non-Fungible Token) fraud trends. The study employed a quantitative design. The authors used descriptive statistics to check trends, while an ANOVA test was used to check whether there were mean differences. Only bank transfers registered a higher amount lost than cryptocurrency, according to descriptive statistics; the other payment methods - cash or cash advances, checks, credit cards, debit cards, gift cards or reload cards, money orders, payment apps, and wire transfers - all registered losses that were significantly lower than cryptocurrency's total loss. However, a posthoc test used after an ANOVA reveals no significant difference in the amount lost between cryptocurrency and the other payment methods. The investigation also showed that, between 2019 and 2021, the majority of Instagram mega-influencers with more than a million international followers used fraudulent practices to fictitiously increase their engagement and follower counts. Mega-fraudsters made up 66.77% of all influencers in 2020; by 2021, that percentage had fallen to about 62.87%. In 2021, fraud was committed by influencers to the tune of 49.23% on average. Between 2020 and 2021, there was also a rising trend in NFT fraud. Loss of stakeholder funds, the obliteration of revenue streams, and the erosion of confidence are a few consequences of new fraud tendencies. Preventive measures are needed, such as improved verification processes, open policies, and industry collaboration, to lessen these risks and ensure the influencer marketing ecosystem's long-term viability.

Keywords: fraud; cryptocurrencies; NFT fraud; influencer fraud; bank transfers; corruption (search for similar items in EconPapers)
JEL-codes: E62 H2 H26 O17 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.afj.org.ua/pdf/1089-fiskalni-naslidki-s ... dencii-ta-vimiri.pdf (application/pdf)
http://www.afj.org.ua/en/article/1089/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2024:i:3:p:87-95

DOI: 10.33146/2307-9878-2024-3(105)-87-95

Access Statistics for this article

Oblik i finansi is currently edited by Valeriy Zhuk

More articles in Oblik i finansi from Institute of Accounting and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Serhiy Ostapchuk ().