The Nature and Victimization of Investment Fraud

Authors

  • Jonah Badua

Keywords:

nature, victimization, investment fraud

Abstract

Introduction

The problem of investment frauds became widespread thus victimization also increases. However minimal attention is being given to this issue and sometimes being ignored. In the Philippines, there was also massive fraudulence in society as experienced by victims. Consequently, investment fraud became widespread in the province of Ilocos Norte based on published news reports however reporting to proper authority is very few. Research has been made on investment fraud in other countries however there is a scarcity of research that examines the specific surroundings of investment fraud and much less attention has been paid to the consequences of victimization in the local setting. This study investigated the reasons why victims fall into investment fraud, the effects of investment fraud victimization and their coping mechanisms.

 

Methods

A qualitative research design was used particularly on phenomenology. Twelve (12) victims were selected using snowball sampling. The study was conducted at Laoag City, Batac City and the municipality of San Nicolas. Data were gathered through the conduct of In-Depth Interview (IDI) using an interview guide. Before the interview proper, the researcher gave a brief overview of the study and obtained the consent of the participants and thoroughly explained. Voluntary participation was observed. Each participant was interviewed twice. The participants were named using a screen name or pseudonyms. Ethical considerations were observed in all the stages.

 

Results

The victims fall into investment fraud because of their desire to increase income, scarcity in life, persuasion, trust and confidence, the profile of the victims and recklessness. The effects of investment fraud victimization were financial losses, feeling of betrayal, frustrations, depressions, vigilance, and powerlessness, impairment of relationship and loss of appetite. The victims did not only suffer a single effect but all of these effects were experienced by them. Their victimization instills a sense of vigilance to them. The victims cope up by observing openness, hopefulness, courageousness, and self-help.

 

Discussions

Investment fraud victimization is associated with personal motivations and character which is detrimental to one's life. Strengthening the capability of law enforcement agencies is in dire need to respond with the complexities of investment fraud operations. Intensify information drive campaign on investment fraud.

Published

2019-12-18