{"title":"Forensic accounting as an investigative tool: Insights from the FTX and Qatargate","authors":"Gerasimos Dimitropoulos Γεράσιμος Δημητρόπουλος , Michelle Reading","doi":"10.1016/j.jeconc.2025.100132","DOIUrl":"10.1016/j.jeconc.2025.100132","url":null,"abstract":"<div><div>This paper examines the critical role of forensic accounting in investigating cross-border white-collar and state-organised crimes, focusing on case studies of the FTX collapse and the Qatargate scandal. Utilising a qualitative approach guided by the interpretivist paradigm, secondary data from scientific publications, case studies, business journals, and organisational guidelines were analysed. The study identifies significant challenges forensic accountants face, including regulatory inconsistencies and international cooperation barriers. Findings suggest that enhanced international collaboration, the application of advanced forensic techniques, and ethical leadership are essential in detecting such crimes and preventing systemic failures. The study introduces the \"Velvet Claw Tactics\" framework, which provides insights into these crimes and underscores the role of forensic accountants in understanding and combating them. Recommendations include strengthening global forensic accounting practices and developing a unified international framework to address these crimes effectively. The research contributes to both theoretical and practical advancements in forensic accounting and international cooperation.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100132"},"PeriodicalIF":0.0,"publicationDate":"2025-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143465363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Assessing the role of the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA) in light of virtual assets and cross-regional cryptocurrency-based money laundering in Nigeria","authors":"Oluwabunmi Adaramola","doi":"10.1016/j.jeconc.2025.100129","DOIUrl":"10.1016/j.jeconc.2025.100129","url":null,"abstract":"<div><div>Africa is one of the fastest-growing crypto markets in the world, with its crypto transactions peaking at $20 billion per month in mid-2021, with Nigeria contributing to the world’s third largest bitcoin-holding. Evidence continues to grow, showcasing criminals who seek to use cryptocurrencies for illegal activities like money laundering which could subsequently give rise to the event of an unregulated economy and global financial instability. As a result of the challenges of these unconventional currencies and transaction methods, the Financial Action Task Force (FATF) updated its recommendations (particularly with the inclusion of Recommendation 15 on New Technologies) to address the various money laundering and terrorism financing risks associated with virtual assets (including cryptocurrencies) and Virtual Asset Service Providers (VASPs) as an attempt to encourage member states’ regulatory actions against such risks.</div><div>As there has been considerable work carried out by the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA) with regards to the implementation of Recommendation 15 in West African member states (and particularly Nigeria for the purpose of this research), this paper therefore investigates and evaluates the role of GIABA as an FRSB in monitoring Money Laundering in West Africa and implementing FATF Standards in the 21st-century era of virtual assets and other cryptocurrencies. Particularly, it provides an in-depth assessment of GIABA’s work in monitoring the implementation of Recommendation 15, especially with regards to cryptocurrency-based money laundering amidst the growth of cryptocurrency exchange and trading services in West Africa.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100129"},"PeriodicalIF":0.0,"publicationDate":"2025-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143388308","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Suleman Lazarus , Mark Button , Kaina Habila Garba , Adebayo Benedict Soares , Mariata Hughes
{"title":"Strategic business movements? The migration of online romance fraudsters from Nigeria to Ghana","authors":"Suleman Lazarus , Mark Button , Kaina Habila Garba , Adebayo Benedict Soares , Mariata Hughes","doi":"10.1016/j.jeconc.2025.100128","DOIUrl":"10.1016/j.jeconc.2025.100128","url":null,"abstract":"<div><div>This study used an emic approach to examine the dynamics of online romance fraud, focusing on the migration of offenders from Nigeria to Ghana. We collected data through qualitative methods, such as semi-structured interviews and focus group discussions. Ghanaian police officers and Nigerian law enforcement officers were consulted for their perspectives. Thematic analysis revealed key findings, including the migration patterns of Nigerian offenders to Ghana and the institutionalisation of scamming enterprises. These findings shed light on the transnational and structural factors driving online romance fraud in West Africa, highlighting both its global reach and the local mechanisms sustaining these criminal networks. This research contributes to a deeper understanding of regional and international cybercrime dynamics, offering valuable insights to inform policy and law enforcement strategies.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100128"},"PeriodicalIF":0.0,"publicationDate":"2025-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136824","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Phishing scams on social media: An evaluation of cyber awareness education on impact and effectiveness","authors":"Emma Mouncey, Simona Ciobotaru","doi":"10.1016/j.jeconc.2025.100125","DOIUrl":"10.1016/j.jeconc.2025.100125","url":null,"abstract":"<div><div>The threat of phishing scams is rising, with increasingly deceptive techniques targeting social media platforms such as Instagram. Many users remain unaware of these risks, leaving them vulnerable. However, little research explores the impact of phishing education on social media, particularly Instagram. This study surveyed 73 Instagram users regarding their awareness of phishing scams and anti-phishing education. Responses were analysed using descriptive statistics, linear regression, and content analysis to assess the perceived usefulness of phishing education and factors influencing engagement. Results indicate that phishing education enhances digital literacy, which users find valuable for their Instagram safety. Those who had completed training reported it as beneficial, regardless of the time since training. However, barriers such as time constraints and perceptions that training is boring or irrelevant were noted. The study discusses potential implications, including compulsory training and the use of digital nudges and micro-training to increase user awareness and engagement.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100125"},"PeriodicalIF":0.0,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136816","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Harnessing artificial intelligence and machine learning for fraud detection and prevention in Nigeria","authors":"Oluwaseun Isaac Odufisan , Osekhonmen Victory Abhulimen , Erastus Olarenwaju Ogunti","doi":"10.1016/j.jeconc.2025.100127","DOIUrl":"10.1016/j.jeconc.2025.100127","url":null,"abstract":"<div><div>Fraud poses a significant threat to Nigeria's burgeoning digital economy, impacting sectors like finance, e-commerce, healthcare, and education. Traditional methods struggle to keep pace with evolving fraud schemes. This paper investigates the potential of Artificial Intelligence (AI) and Machine Learning (ML) for enhanced fraud detection and prevention in Nigeria. We explore various AI methodologies, including supervised, unsupervised, and deep learning. We discuss their applications in anomaly detection, behavioural analysis, risk scoring, and network analysis. By leveraging AI's continuous learning capabilities, organizations can adapt to novel fraud tactics. The paper highlights the benefits of AI-powered fraud detection, including increased efficiency, improved accuracy, and proactive risk mitigation. However, challenges like technical limitations and regulatory considerations are acknowledged. Lastly, we examine the promising future of AI and ML in transforming the financial crime prevention situation in Nigeria.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100127"},"PeriodicalIF":0.0,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136826","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Is financial stress a facilitating factor in cartel formation?","authors":"Jesper Fredborg Huric-Larsen","doi":"10.1016/j.jeconc.2025.100126","DOIUrl":"10.1016/j.jeconc.2025.100126","url":null,"abstract":"<div><div>It is well-known that failing to achieve key organizational goals may pressure managers to commit fraud, but can it be a facilitating factor in cartel formation as well? The purpose of this study is to understand if firms known to have been in a cartel were under financial stress in the period leading up to the cartel formation. A trend analysis is used to examine the performance of the firms before, during, and after the cartel period. The study uses accounting data on firms belonging to sanctioned cartels. In addition, the data is used to determine if firms can achieve joint profit maximization and what happens to firm performance after the cartel is broken down. The results support the proposition that financial stress can be a motivating factor for cartel formation. Moreover, the results show that several firms fall short of benefitting from cartel participation and that cartel breakdown often leads to a worse than initial outcome. The conclusion is that financial stress increases the chances of firms engaging in cartel activity. And, that structural break analyses can likely detect cartels using trends in the performance of firms.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100126"},"PeriodicalIF":0.0,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Preventing fraud in crypto payments","authors":"Louise Damkjær Christensen","doi":"10.1016/j.jeconc.2024.100124","DOIUrl":"10.1016/j.jeconc.2024.100124","url":null,"abstract":"<div><div>When paying with a payment instrument in fiat currency within the EU, the transaction is covered by the PSD2, which provides prudent protection for payers and their payment instruments. When the transaction is instead executed in bitcoin, an unbacked crypto-asset, the transaction is not covered by any EU regulation despite it being used as a method of payment for goods and other services. This leaves consumers in a bad position if their electronic wallet has been abused for fraudulent payments in unbacked crypto-assets as the victim bears the full loss and there is no option for rectification. Change is warranted around crypto payments as the current legal situation leaves consumers unprotected and vulnerable to digital economic crime. This article examines possible solutions to deter criminal activity in the crypto economy, and how to make financial regulation more adept to make crypto payments safer and protect payers in cases of payment fraud. The article concludes that crypto payment fraud is already criminalised in criminal legislation, but changes can be made in financial law to provide protection for the victims of crypto payment fraud.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100124"},"PeriodicalIF":0.0,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Metaverse crimes in virtual (Un)reality: Fraud and sexual offences under English law","authors":"Andreas Karapatakis","doi":"10.1016/j.jeconc.2024.100118","DOIUrl":"10.1016/j.jeconc.2024.100118","url":null,"abstract":"<div><div>The technological evolution has not only opened new frontiers but has also become an indispensable part of our daily lives. However, the technology that enhances our lives presents a dual reality—it offers opportunities for criminals while creating challenges for law enforcement. Fraud, particularly, has become a pervasive issue. In response, virtual asset service providers must take measures to tackle cryptocurrency-related fraud. Nevertheless, this becomes challenging if the perpetrator exists solely within the virtual world. In 1992, Neal Stephenson used the term ‘Metaverse’ to describe a virtual world where people interact with each other using avatars. Over time, the Metaverse has transformed into a complex concept akin to 'cyberspace'. The Metaverse is a virtual environment that uses technologies to mimic the real world. As this virtual space became intertwined with financial transactions, especially through cryptocurrencies, the Metaverse evolved into a medium for perpetrating scams. Within this context, the article addresses the challenges associated with criminal activity in the Metaverse. Considering the potential applications of AI, cryptocurrencies and Non-Fungible Tokens, three main challenges can be identified: 1) decentralisation, 2) anonymity of the user, and 3) lack of regulation. This article examines the applicability of existing legislation to regulate criminal activity in the Metaverse through doctrinal research. Using a comparative approach, it analyses the challenges of addressing virtual crimes by contrasting fraud (Fraud Act 2006) with sexual assault (Sexual Offences Act 2003), highlighting the complexity of addressing crimes involving physical contact in virtual spaces compared to financial crimes.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100118"},"PeriodicalIF":0.0,"publicationDate":"2024-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136814","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Using data analytics to distinguish legitimate and illegitimate shell companies","authors":"Milind Tiwari , Adrian Gepp , Kuldeep Kumar","doi":"10.1016/j.jeconc.2024.100123","DOIUrl":"10.1016/j.jeconc.2024.100123","url":null,"abstract":"<div><div>Shell companies can be a legitimate entity but can also been used for illicit activities such as money laundering. Users of shell companies have included illegal arms dealers, drug cartels, terrorists and cyber-criminals, as well as legitimate businesses. To assist in distinguishing between legitimate and illegitimate uses of shell companies, we develop a data-driven model to detect shell companies that are being used for money laundering. We use a hybrid approach combining graph analytics and supervised machine learning. The resulting detection models have an impressive classification accuracy ranging between 88.17 % and 97.85 %. We found no prior study that developed such models to detect illicit shell companies using publicly available information as done with our models. Beneficiaries of this work include government officials and compliance professionals, particularly accountants, tax officials and anti-corruption agencies.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100123"},"PeriodicalIF":0.0,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136815","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Assessing the impact of socioeconomic disparities on criminal behaviors in oil producing communities in Niger Delta Nigeria","authors":"Godwin Egbe","doi":"10.1016/j.jeconc.2024.100119","DOIUrl":"10.1016/j.jeconc.2024.100119","url":null,"abstract":"<div><div>This study investigates the rise of social inequalities in oil-producing communities in Nigeria's Niger Delta, identifying factors that contribute to socioeconomic disparities. Over the last two decades, these communities have endured environmental degradation, youth violence, militancy, and conflict with transnational oil companies. The study uses relative deprivation and general strain theories to explain variances in the living standards of residents. Primary data gathered through surveys revealed that income and education levels are significant predictors of inequality and criminal behavior. The policy implications underline the importance of effective checks and balances in community development committees, with a focus on grassroots development and accountable administration.</div></div>","PeriodicalId":100775,"journal":{"name":"Journal of Economic Criminology","volume":"7 ","pages":"Article 100119"},"PeriodicalIF":0.0,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143136819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}