Exploring the roles played by trust and technology in the online investment fraud victimisation process

Abstract

This study provides a novel analysis of the roles played by trusting relationships and technology in enabling online investment fraud victimisation. Two hundred self-report victim testimonies collected from online forums were analysed using inductive thematic analysis. The themes that emerged described personal factors that may have increased victimisation risks, how victims perceived their relationship with the scammer and the nature of the scam. The findings suggested the applicability of several existing theories of trust building and technology use to understand the phenomenon of online investment fraud victimisation. Trusting relationship creation is seemingly important for building trust in longer-form scams, as well as shorter-form scams, and rich media is used by scammers both to facilitate hyperpersonal relationships and to enhance the legitimacy of both forms of investment fraud. Victims attempted to use technology to protect themselves from scammers, but these strategies fell short owing to a lack of digital literacy or inadequate technical safeguards. Future studies may further analyse the persuasive messaging used to advertise online investment fraud to understand how victims first become aware of a scam. The findings relating to victim self-protection also raised questions regarding the nature of “victimisation” in the context of online investment fraud, suggesting that future research should seek to explore the role played by online guardianship in online investment fraud further.