A framework for investment scam reporting: Deception and reverse agency in an Australian context

Scammers extensively utilise and exploit the cognitive biases and emotions of victims in investment scams. The study investigated investment scam reporting events, with loss amounts, scammers' contact methods, and victims' demographic factors as determinants. By downloading publicly accessible scam statistics data from the Scam Watch website maintained by the National Anti-Scam Centre of the Australian Government, the study extracted and analysed investment scam loss data from January 2023 to June 2024, comprising 3283 observations. The data were analysed using negative binomial regression with loss-reported events as the dependent variable. The determinants comprised the monetary value of investment scam losses, nine scammer contact methods, six victim age groups, two victim gender groups and age-gender interaction. Stating hypotheses informed by reverse agency arrangement and the general deception theory, results show that investment scam loss amounts did not influence reporting by victims. The fax and mail contact methods did not significantly influence victims' reporting. Scam contacts made over phone calls were five times more likely to be reported, email four times, social media and internet three times, and mobile apps and in-person contact were twice as likely to be reported by a victim. Victims aged 65 and over were five times as likely to report being a victim. Both genders aged 35-44 and 45-54 were twice as likely to report being a victim.