Investment Fraud Research Articles

How effective is legal protection in Indonesia in handling investment fraud cases compared to other countries?

Legal protection for investors is crucial in preventing the negative impact of rampant investment fraud, especially in the digital era that facilitates access to information. The ever-growing phenomenon of investment fraud shows the importance of evaluating the effectiveness of existing legal frameworks. This study aims to analyze the effectiveness of legal protection in Indonesia in dealing with investment fraud cases, with a normative juridical approach that examines relevant regulations in Indonesia and compares them with other countries such as the United States and India. This method is used to understand the weaknesses and challenges in the implementation of existing laws. The results of the study show that although Indonesia has a comprehensive legal framework, such as Law Number 8 of 1995 on the Capital Market and the Electronic Information and Transaction Law (UU ITE), challenges in law enforcement and public education are still significant obstacles. Unlike the US and India, which implement strict sanctions and have strict supervision, legal protection in Indonesia still needs reforms to increase the deterrent effect for actors and strengthen public trust in the investment system.

Implementasi Teori Hukum Keadilan Bermartabat Dalam Hukum Investasi

Investment plays a crucial role in the economic development of a nation and the welfare of its people. Investment law governs the norms and regulations that encompass the possibilities, requirements, protections, and directions of investment to achieve such welfare. In the context of Indonesia, economic development and societal well-being are regulated by the Constitution, with the government having legislation that regulates both domestic and foreign investment. The theory of dignified justice, based on the values of Pancasila, serves as a fundamental principle in investment law, aiming for absolute justice, fair certainty, and utility as primary objectives. A case study on investment fraud in the mining sector illustrates the application of dignified justice theory in legal practice. This research aims to analyze the implementation of dignified justice theory in investment law in Indonesia, focusing on the principles of investment and case studies of investment fraud. The research method employed is juridical normative and literature review. The findings demonstrate that dignified justice serves as the main guideline in upholding the law and providing certainty for economic actors. Dignified justice reflects how the law addresses injustice, with the hope that existing regulations ensure fair certainty for all parties. Thus, investment law in Indonesia embraces the principle of dignified justice to bring about shared prosperity within society.

Sanksi Hukum Pidana Terhadap Pelaku dan Perlindungan Hukum bagi Korban Investasi Bodong

The problem that the author wants to look at is what are the criminal sanctions for perpetrators of fraudulent investments and what are the legal protections for victims of fraudulent investments according to Indonesian criminal law. The application of legal sanctions for perpetrators of online investment fraud has not been explicitly regulated in a special law which can provide criminal penalties for perpetrators but is regulated in the Criminal Code Article 372 with a maximum prison sentence of four years or a maximum fine of nine hundred. rupiah, and Article 378 with a maximum prison sentence of 4 years. This research focuses on criminal cases of investment fraud. The main weakness in the legal sector for victims of fraudulent investments is the problem of legal uncertainty. This legal vacuum can result in the effectiveness and optimization of protection for victims of fraudulent investments not being optimal. The fact is that there is still a legal gap that perpetrators of fraudulent investments often escape heavy sanctions. To provide valuable results, the research methodology in this article uses normative juridical analysis, which is one of the methods and techniques of social science analysis. In this regard, normative juridical research is only based on document research using secondary data consisting of statutory regulations, court decisions, legal theory and royalties. The purpose of this research is to provide a discussion regarding the implementation of legal actions in current cases. So, through this research, it can be seen that law according to its function can play a role in resolving several criminal cases in Indonesia, such as the fraudulent investments that the author discusses.

Examining Social Actors in Investment Fraud News: A Transitivity and Appraisal Analysis

Examining Social Actors in Investment Fraud News: A Transitivity and Appraisal Analysis

Pengaruh Literasi Keuangan dan Persepsi Risiko pada Mahasiswa di Surabaya Terhadap Pencegahan Investasi Ilegal

Students utilize technology to invest which can make it easier for them to access and learn about financial understanding. However, if access to investment is not balanced with an understanding of investment products and their mechanisms in the hope of getting large returns, it will become an opportunity for perpetrators of investment fraud. The aim of this research is to determine the influence of financial literacy and risk perception among students in Surabaya on preventing illegal investment. The method used in this research is quantitative. The population in this study were students who invested and were registered in 14 university investment galleries in Surabaya so that the sample obtained was 100 respondents and used a purposive sampling technique. Data collection is by using a questionnaire with Google Form. The results of the research show that financial literacy influences the prevention of illegal investment, risk perception influences the prevention of illegal investment and financial literacy and risk perception simultaneously influence the prevention of illegal investment.

Deconstructing a form of hybrid investment fraud: Examining ‘pig butchering’ in the United States

Cyber-enabled fraud has transformed, becoming more complex and making it harder for targets and law enforcement to detect its occurrence. This study aims to recontextualize a major manifestation of this transformation, a crime called hybrid investment fraud, colloquially known as pig butchering. Hybrid investment fraud describes a cyber-enabled fraud whereby criminals gain the trust of victims by forming connections and relationships, and then exploit this trust by using a series of confidence building and coercive measures designed to encourage victims to continuously invest in securities or commodities until they become unable or unwilling to continue to make payments or the offenders become unreachable. This study further aims to address the existing knowledge gap by focusing on understudied elements of this fraud, such victim and offender characteristics and the ways hybrid investment fraud is perpetrated. To achieve this, we conducted an in-depth analysis of more than 1,300 news articles and court documents between January 1, 2018, and November 1, 2023, to identify 59 cases of hybrid investment fraud targeting victims in the United States. This article both situates hybrid investment fraud within the broader fraud literature and conducts a comprehensive of analysis of hybrid investment fraud cases to identify the types of hybrid investment fraud committed, their impact, victim and offender demographics, and offenders’ tactics, tools, and methods of operation. The findings from this study can inform criminal justice practices and future research of this fraud.

INTERNET USERS’ PERCEPTION OF THE PREVALENCE OF ONLINE INVESTMENT FRAUD AND VICTIMISATION IN NIGERIA

This study investigated the prevalence of online investment fraud and victimisation among internet users in Nigeria, focusing on sociodemographic characteristics, investment behaviours, victimisation. experiences, and perceptions of fraud risk factors. The study employed a cross-sectional survey design, utilizing Google Forms for data collection and convenience sampling to recruit 164 participants from Ilorin, Kwara State. The study adopted the Routine Activities Theory (RAT) as theoretical framework. Findings reveal that a majority of respondents are young individuals with tertiary education, indicating their susceptibility to online investment fraud due to limited financial experience and a desire for quick financial gains. Notably, over half of the participants actively engage in online investments. In addition, family and friends' recommendations and the pursuit of financial freedom influencing investment decisions significantly. However, a substantial proportion of investors report falling victim to online investment fraud, predominantly through Ponzi/pyramid schemes, crypto currency scams, and forex trading scams. Financial losses vary among victims, with factors such as lack of regulation, poverty, unemployment, and insufficient training on fraud prevention contributing to vulnerability. Statistical analysis indicates a significant relationship between investment experience and the perception of high returns as a risk factor for fraud victimisation. These findings underscore the urgent need for regulatory measures, public awareness campaigns, and educational initiatives to mitigate the risks associated with online investment fraud in Nigeria.

Legal Protection for Victims of Illegal Investment Fraud Using the Ponzi Scheme in Indonesia

This study was conducted through the investigation and analysis of additional criminal reasons for rulgi can be applied as an ulpaya perlindungan victim of investment with a ponzi scheme. Also, reviewing and analyzing Hukum Perlindungan for Victims of Investigative Pellnipulan with Ponzi Skema. This research uses a Normative Juridical approach. While the penelitian that is carried out by pelnelliti is the case study (Casel Approach). The results of this study show two things, namely: 1) At present there are only a few regulations that more or less allude to the discussion of ponzi, including: Law No. 7 of 2014 concerning Trade, Law No. 21 of 2008 concerning Sharia Banking, Law No. 19 of 2016 Jo. Law No. 11 of 2008 concerning Electronic Information and Transactions Government Regulation No. 82 of 2012 concerning the Implementation of Electronic Systems and Transactions. Criminal provisions against investment activities with ponzi / fraudulent schemes are regulated in Article 378 of the Criminal Code and are very closely related to crime and the scope of criminal liability, 2) Compensation as one type of criminal sanction adopted in the new Criminal Code does not provide further explanation about the amount.

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

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 understandi 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.

Monetary Smurfing Analytics Model using ML

The act of taking money obtained from illegal operations, such as drug trafficking, and disguising it as profits from a legitimate business venture is known as money laundering. The money obtained through illegal action is regarded as dirty, and to make it appear clean, it is "laundered." Money laundering is a major concern to the country these days, as well as financial institutions. The sophistication of this illegal activity is growing; it appears to have beyond the tired old trope of drug trafficking to include financing terrorism and, of course, personal benefit. Research on anti-money laundering is crucial since money laundering is a global issue that seriously jeopardizes international security and financial stability. Furthermore, it's estimated that the banking system seizes only 0.2% of the money that has been laundered. The crime itself is growing more sophisticated and intricate, and banks are becoming more vulnerable as a result of its ongoing volume amplification. Considering the role that banking institutions play in the money-laundering industry, practitioners and researchers are becoming more interested in creative ways to solve problems and enhance anti-money-laundering efforts. Researchers are starting to look into the viability of artificial intelligence methods in this setting. A systematic knowledge deficit concerning a thorough study that meticulously examines and combines artificial intelligence methods for countering money laundering in the banking industry was discovered, though. To combat investment fraud, the majority of global financial institutions have been putting anti-money laundering measures into place. Data mining tools have emerged recently and are thought to be effective methods for identifying instances of money laundering.

“More intelligent, less emotive and more greedy”: Hierarchies of blame in online fraud

Online romance and investment fraud are growing crimes in Australia by volume and money lost but are also known to attract high levels of victim blame. The Fraud Justice Network (FJN) refers to the multitude of institutions that aim to combat frauds, but little is known about how and how and why professionals within these entities ascribe blame to fraud victims. ‘Ideal victimhood’ is constructed based on the nature and circumstances of the crime and behaviours of victim and offender and can effectively work to create hierarchies of legitimacy among victims. This article presents findings of perspectives and experiences of the FJN in Australia, through fourteen semi-structured interviews with FJN professionals. Thematic analysis found a discrepancy in the way the two types of victims were perceived. Reasons and potential impacts are discussed.

Analisis Mekanisme Pengungkapan Kasus Penipuan Investasi Di Masyarakat Pada Masa Pandemi Covid 19 (Studi Kasus Polda Daerah Istimewa Yogyakarta)

This research aims to identify trends in investment fraud problems during the Covid 19 pandemic, identify disclosure mechanisms carried out by the Yogyakarta Regional Police in investment fraud cases, explore the obstacles encountered in disclosing investment fraud cases and provide recommendations for improvements that can be made by the Regional Police. Yogyakarta Special. This research was conducted to analyze the role of the Regional Police of the Special Region of Yogyakarta in disclosing cases of investment fraud during the Covid 19 pandemic by using the crime triangle. This study used a qualitative approach using primary and secondary data from the Special Region of Yogyakarta Regional Police, while collecting data by means of documentation and in-depth interviews. The results of the study show that the cause of investment fraud is due to the low financial literacy of the community so that people are easily persuaded by the large benefits offered. The role of the Regional Police of the Special Region of Yogyakarta in disclosing cases of investment fraud in the community during the Covid-19 pandemic was carried out through the stages of complaint, investigation and investigation. Keywords : The role of Polda, Disclosure, Investment, Covid 19

Analysis of the Ponzi Scheme in P2P Platform: Taking Ezubo as an Example

Driven by economic development, P2P online lending platforms have become a new area for the development of the financial industry. The rise of P2P platforms reflected the improvement in people's quality of life and the increasing demand for investment. This is good for economic development, but it also increases the difficulty of market supervision, and investment fraud from the perspective of Ponzi schemes is becoming more and more serious. This paper took Ezubo as an example to study the causes of the Ponzi scheme. According to research, it was found that the formation of a Ponzi scheme was closely related to corporate financial fraud, corporate and P2P risk problems, and social factors. The paper analyzed Ezubo's financial fraud, conducted risk analysis, and made suggestions on risk management and strengthening education. This paper helps to complement the shortcomings of current research on Ponzi schemes, and the advice on such behavior also has some practical implications to help people stay away from investment fraud.

The Effect of Financial Literacy on the Ability to Detect Investment Fraud

The financial sector has been increasingly digitized over the last few years, and the volume of fraudulent operations has also increased, which can have severe consequences. People's digital lives are growing along with the proliferation of the internet and other digital media, giving rise to increasingly sophisticated forms of fraud as a result of the increasing availability of various financial services, which of course will be detrimental to potential investors who want to develop their businesses due to their very minimal knowledge of finance. This study aims to examine the effect of financial literacy on the ability to detect investment fraud, with the moderating variables of gender, age, and level of education. With a sample of 400 residents living in Greater Solo, this study used simple linear regression analysis and Moderated Regression Analysis (MRA). Based on the results and discussion of the above research, financial literacy has a positive and significant effect on the ability to detect investment fraud. In addition, the factors of gender, age, and education have no significant effect on moderating the effect of financial literacy on the ability to detect investment fraud.

Criminal Accountability False Investments with Ponzi Schemes in Indonesia

Indonesia is currently experiencing a surge of investments, which is resulting in both positive and negative outcomes. Supported by increasingly fast technology, “investment” activists are even more enthusiastic about continuing to develop their investments. Recently, investment activists have faced various forms of fraudulent investment with Ponzi schemes. This study aims to determine criminal liability in investing in Ponzi schemes in Indonesia and the protection measures that can be provided for victims. Using normative legal research methods, it was found that fraudulent Ponzi scheme investors in Indonesia can be charged with Article 378 of the Criminal Code. And, because they do not have a permit, fraudulent investments can be subject to Article 103 of Law Number 8 of 1995 concerning Capital Markets, related to investment victims, falsifying a Ponzi scheme in an application because it uses electronic media can be subject to Article 28 paragraph 1 of Law Number 11 of 2008 concerning information and electronic transactions, which has been amended by Law Number 19 of 2016 concerning Amendments to Law Number 11 of 2008 concerning information and electronic transactions.
 Keywords: investment fraud, Ponzi scheme, criminal liability

The Language of Lies: An Analysis of Deceptive Linguistic Cues on Malaysian Investors’ Decision Making

In our technology-driven era, scams have become an increasingly pervasive threat, impacting countless individuals daily and causing not only financial losses but also emotional distress and a lack of trust in societal systems. Among the plethora of fraudulent activities, investment scams stand out as one of the top three reported types. These scams often involve scammers gaining the trust of victims through investment tutoring before soliciting money. This qualitative study aims to analyse the linguistic cues of deception embedded in investment scams’ promotional materials. The significance of this research lies in its focus on linguistic cues that utilise considerable influence over investment decision-making processes. The study used linguistic analysis to examine investment scam webpages from reputable organisations like the Securities Commission Malaysia (SC), the Central Bank of Malaysia (CBM), the Financial Consumer Alert List (FCA), and the Royal Malaysia Police (RMP). The qualitative analysis revealed different linguistic cues used, such as credibility enhancement, expressive language, cognitive biases, and framing effects. These findings illuminate how scammers manipulate language to shape investors’ perceptions of promotional materials. By offering insights into these deceptive tactics, the study equips individuals with the knowledge necessary to navigate financial environments with greater awareness and resilience, thereby serving as a crucial tool in the ongoing battle against investment fraud.

Counteracting Cybercrimes in Florida

This article explores Florida's high rate of cybercrime and the efforts being made to combat it. Florida has the second-highest rate of cybercrime events in the United States, with significant financial losses. The most frequent dangers are call center fraud, ransomware, investment fraud, and business email compromise. Strong defense tactics, including multi-factor authentication, safe password policies, cybersecurity training, frequent software upgrades, network segmentation, and dependable backups, are emphasized throughout the text. It also emphasizes the importance of efficient incident response procedures, promoting teamwork, and using continuous monitoring to lessen cyber threats. The essay discusses the vital role that international collaborations and law enforcement play in the battle against cybercrime.

Reporting Investment Fraud

Reporting Investment Fraud

Corporate Investment Fraud

Salah satu bentuk aktivitas penipuan yang umum terjadi dalam dunia bisnis adalah penipuan investasi, yang seringkali merugikan masyarakat. Penipuan investasi terjadi ketika individu atau entitas mengumpulkan dana dari masyarakat tanpa izin dari otorisasi yang berkaitan. Penelitian ini akan membahas tentang pendirian sistem tanggung jawab pidana korporasi untuk kejahatan ekonomi, khususnya yang terkait dengan investasi. Fokus utamanya adalah memahami bagaimana entitas korporasi dianggap bertanggung jawab dalam kerangka hukum untuk aktivitas tersebut. Metode Penelitian ini mengadopsi pendekatan normatif, memandang kerangka hukum sebagai sistem norma yang terdiri dari prinsip-prinsip, peraturan perundang-undangan, preseden hukum, perjanjian kontraktual, dan ajaran doktriner. Penelitian ini mengungkapkan bahwa pengawasan terhadap aktivitas penipuan dalam korporasi dan penipuan investasi menyoroti peran penting yang dimainkan oleh regulasi hukum dan definisi dalam menjaga integritas pasar keuangan dan standar etika. Analisis ini menyoroti signifikansi besar yang ditempatkan pada penanggulangan perilaku penipuan dalam kerangka hukum, sebagaimana yang terlihat dalam ketentuan dalam Kode Pidana. Ketentuan hukum ini menekankan sifat sengaja dari penipuan, penggunaan identitas atau posisi palsu, dan potensi pemberian sanksi berat, termasuk penjara dan denda, yang digunakan sebagai pendekatan efektif untuk mencegah perilaku penipuan. Selain itu, pemeriksaan tanggung jawab pidana korporasi mengkonfirmasi bahwa perusahaan, yang berfungsi sebagai entitas hukum yang berbeda, memiliki kapasitas pertanggungjawaban hukum terkait tindakan yang dilakukan oleh perwakilan mereka, termasuk yang terkait dengan penipuan investasi. A prevalent form of fraudulent activities in the business sphere is investment fraud, which often affects unsuspecting members of the public. Investment fraud occurs when individuals or entities collect funds from the public without the required permits or authorizations. This study investigates the establishment of a system of corporate criminal liability for economic crimes, particularly those related to investments. The primary focus is to comprehend how corporate entities are held liable within the legal framework for such activities. This research adopts a normative approach, viewing the legal framework as a composite system of norms encompassing principles, statutory regulations, judicial precedents, contractual agreements, and doctrinal teachings. The investigation reveals that the scrutiny of fraudulent activities in corporate and investment fraud highlights the vital role played by legal regulations and definitions in upholding the integrity of financial markets and ethical standards. This analysis sheds light on the substantial significance attached to addressing fraudulent behaviors within the legal framework, as evidenced by the provisions in the Criminal Code. These legal stipulations underscore the deliberate nature of deception, the use of false identities or positions, and the potential imposition of severe penalties, including imprisonment and fines, all employed as potent deterrents against fraudulent conduct. Furthermore, the examination of corporate criminal liability confirms that corporations, functioning as distinct legal entities, possess the capacity for legal accountability regarding the actions undertaken by their representatives, including those related to investment fraud.

Enforcement Against Ponzi Scheme, The Fraudulent Method to Generate Easy Money in Malaysia

Ponzi schemes are a type of investment fraud that offers investors great rates of return with no risk. Although various measures have been taken by law enforcement agencies as well as financial regulators to prevent this kind of problem, many people are still deceived by this kind of scheme. In Malaysia, there is no specific law mentioning Ponzi scheme. However, relevant laws such as the Penal Code, Financial Services Act 2013 and Direct Sales and Anti–Pyramid Scheme Act 1993 are some applicable laws that can be used to combat the Ponzi scheme. Hence, this article aims to examine the enforcement measures in Malaysia concerning illicit investment schemes and recommend various methods used by the United States and Australia for comparative purposes. Preventive measures and existing regulations used by the United States and Australia are also highlighted to compare the effectiveness of current enforcement done by the authorities in Malaysia. Findings show that despite Malaysia having a few laws in place to tackle this fraudulent scam, they are far from perfect. Therefore, more comprehensive regulations and strategies regarding this scheme are needed since it would assist the relevant authorities in preventing similar fraud. In conclusion, the Malaysian government needs to adopt proper regulation, education, and enforcement to reduce or prevent the number of Ponzi scheme cases in Malaysia. If left unaddressed, the situation will worsen, negatively affecting investors, creditors, and the public.