The moderating role of Islamic business ethics on Ponzi schemes in the Umrah industry: a fraud triangle theory perspective

Purpose This study aims to investigate the underlying causes of Ponzi schemes in the Umrah travel industry by applying the fraud triangle framework – comprising pressure, opportunity and rationalization. It also examines the moderating role of Islamic business ethics in this relationship. Design/methodology/approach Data were collected through a purposive sampling survey of 103 owners or founders of PPIU (Perusahaan Penyelenggara Ibadah Umrah, or licensed Umrah travel organizing companies) in Indonesia. The Ponzi scheme was analyzed as the dependent variable, with pressure, opportunity and rationalization as independent variables, and Islamic business ethics as a moderating variable. The analysis was conducted using structural equation modeling-partial least squares (SEM-PLS). Findings The results indicate that all three components of the fraud triangle significantly influence the occurrence of Ponzi schemes in the Umrah industry. Moreover, the study reveals that Islamic business ethics do not significantly moderate the relationship between the fraud triangle factors and the emergence of Ponzi schemes. Research limitations/implications This study advances fraud prevention theory by showing that Islamic business ethics alone are insufficient to mitigate fraud without strong institutional controls. Practical implications This study underscores that Umrah agencies, Islamic scholars and government bodies should work together to promote ethical conduct by implementing training, advisory support and capacity-building activities. Social implications This study emphasizes the critical importance of implementing enhanced regulatory frameworks and compulsory ethical audits to safeguard pilgrims and strengthen governance within the Umrah sector. Originality/value This study contributes to the limited body of literature on fraud in religious travel services by specifically exploring Ponzi schemes within the Umrah business context. It offers empirical evidence from Indonesia and integrates Islamic business ethics into a fraud prevention framework, thereby confirming the applicability of the fraud triangle theory while highlighting the urgent need for regulatory reform and ethical reinforcement in the Umrah industry.