Understanding Investment Fraud: in Search of the Pot of Gold At the End of the Rainbow

ABSTRACT - Investment fraud is an increasing problem in the American economy. Spurred on by economic turbulence, high inflation and unemployment, business and investment frauds are siphoning dollars from consumer budgets and rarely do consumers ever recoup their investment. The financial hardship created for fraud victims is perhaps greatest for the elderly. For this reason both the U.S. Senate and House have recently held investigations into the problem of investment fraud. This attention highlights the need for an understanding of the investment decision. Knowledge of the decision process should facilitate the formulation of a solution(s) to the problems created by investment fraud and suggests some lines of research and some research methods that might help elucidate the investment fraud situation.

Citation:

James H. McAlexander and Debra L. Scammon (1986) ,"Understanding Investment Fraud: in Search of the Pot of Gold At the End of the Rainbow", in NA - Advances in Consumer Research Volume 13, eds. Richard J. Lutz, Provo, UT : Association for Consumer Research, Pages: 669.

Advances in Consumer Research Volume 13, 1986      Page 669

UNDERSTANDING INVESTMENT FRAUD: IN SEARCH OF THE POT OF GOLD AT THE END OF THE RAINBOW

James H. McAlexander, University of Utah

Debra L. Scammon, University of Utah

ABSTRACT -

Investment fraud is an increasing problem in the American economy. Spurred on by economic turbulence, high inflation and unemployment, business and investment frauds are siphoning dollars from consumer budgets and rarely do consumers ever recoup their investment. The financial hardship created for fraud victims is perhaps greatest for the elderly. For this reason both the U.S. Senate and House have recently held investigations into the problem of investment fraud. This attention highlights the need for an understanding of the investment decision. Knowledge of the decision process should facilitate the formulation of a solution(s) to the problems created by investment fraud and suggests some lines of research and some research methods that might help elucidate the investment fraud situation.

For further information, write to:

James H. McAlexander / Department of Marketing / College of Business / University of Utah / Salt Lake City, Utah 84112

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