ISSN: 2226-3624
Open access
This study examines the deceptive methods used in online investment scams and the challenges faced by law enforcement authorities to prevent such scams. A mixed method approach combining qualitative content analysis and semi-structured interviews was used to collect data. A total of 200 scam reports posted online in a selected watchdog group were analysed and 12 qualitative interviews were conducted with law enforcement officers. Using thematic analysis, the findings highlight that scammers use social media tools to promote fraudulent investment schemes through targeted advertising, private groups and influencer endorsement. The use of encrypted messaging apps such as WhatsApp and Telegram makes it easier for fraudsters to influence victims while also making it more difficult for law enforcers to detect such scams due to their privacy features. Other challenges faced by law enforcement included lack of cooperation from social media platforms, challenges in tracking “mule” accounts and jurisdictional issues for cross border scams. Findings from this study can guide policy decisions to improve public awareness of how to identify scam strategies. Future studies could involve victim interviews and examine platform-specific prevention strategies to enhance the knowledge of online investment scams.
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