Examining the effect of cryptoculture on susceptibility to financial fraud

• In Event: Risks for Victimization in the Cyber World

Abstract

The exponential rise of cryptocurrency has outpaced both understanding and safeguards regarding its utility, rendering crypto markets susceptible to fraud on a massive scale. In our previous work, evidence suggested a relationship exists between participation in cryptoculture (defined as a subculture on social media and communication apps that encourages cryptocurrency purchases and uses shame and FOMO to prevent disengagement) and susceptibility to fraud victimization. More specifically, those proclaiming higher levels of confidence and knowledge in their cryptocurrency understanding were also more likely to be victims of crypto theft/fraud. As a result, we conducted a new survey of over 1,000 respondents to further explore how social media use, cryptocurrency marketing and messaging may affect one's susceptibility to cryptofraud victimization. In particular we seek to unpack the two most significant correlates of our previous study, overconfidence and knowledge, while also adding new factors like social pressure and coercion in an effort to understand whether these are related to exposure to a deviant subculture or just personality traits.

Authors

• Brandon C. Dulisse, University of Tampa

• Nathan Connealy, University of Tampa

• Matthew Logan, Texas State University