C. Engels
Financial literacy and fraud detection
Engels, C.; Kumar, K.; Philip, D.
Abstract
Who is better at detecting fraud? This paper finds that more financially knowledgeable individuals have a higher propensity to detect fraud: a one standard deviation increase in financial knowledge increases fraud detection probabilities by 3 percentage points. The result is not driven by individuals' higher financial product usage and is observed to be moderated by individuals' low subjective well-being, effectively depleting skills to detect fraud. Interestingly, prudent financial behavior relating to basic money management is found to have negligible effects for detecting fraud. The findings attest to the fact that fraud tactics are increasingly complex and it is greater financial knowledge rather than basic money management skills that provides the degree of sophistication necessary to detect fraud. The paper draws policy implications for consumer education programs to go beyond cultivating money management skills, and provide advanced financial knowledge necessary for tackling fraud.
Citation
Engels, C., Kumar, K., & Philip, D. (2020). Financial literacy and fraud detection. European Journal of Finance, 26(4-5), 420-442. https://doi.org/10.1080/1351847x.2019.1646666
Journal Article Type | Article |
---|---|
Acceptance Date | Jul 10, 2019 |
Online Publication Date | Jul 28, 2019 |
Publication Date | 2020 |
Deposit Date | Jul 11, 2019 |
Publicly Available Date | Jan 28, 2021 |
Journal | European Journal of Finance |
Print ISSN | 1351-847X |
Electronic ISSN | 1466-4364 |
Publisher | Taylor and Francis Group |
Peer Reviewed | Peer Reviewed |
Volume | 26 |
Issue | 4-5 |
Pages | 420-442 |
DOI | https://doi.org/10.1080/1351847x.2019.1646666 |
Public URL | https://durham-repository.worktribe.com/output/1297605 |
Files
Accepted Journal Article
(365 Kb)
PDF
Copyright Statement
This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 28 July 2019 available online: http://www.tandfonline.com/10.1080/1351847X.2019.1646666
You might also like
When It Rains It Drains: Psychological Distress and Household Net Worth
(2021)
Journal Article
Forward Guidance and Corporate Lending
(2021)
Journal Article
Multifactor Models and Their Consistency with the APT
(2020)
Journal Article
Measuring firms' market orientation using textual analysis of 10-K filings
(2020)
Journal Article
Institutional ownership and firms’ thrust to compete
(2021)
Journal Article
Downloadable Citations
About Durham Research Online (DRO)
Administrator e-mail: dro.admin@durham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search