Consumer financial fraud in the United Arab Emirates

What is it about?

This paper aims to study the explanatory power of demographics, financial behaviors and financial literacy on instances of consumer financial fraud (CFF) among Emirati households. This study is based on a survey applied to the United Arab Emirates’ (UAE’s) largest federal higher education institution. The authors analyzed the data using generalized linear models, specifically generalized regressions based on both the logit and the probit models. Independent sample tests were also applied to compare the different subgroups considered in this study.

Featured Image

Photo by Jefferson Santos on Unsplash

Photo by Jefferson Santos on Unsplash

Why is it important?

The authors found that the CFF victims seem to be older with more years of post-secondary education and high monthly credit card balances. When analyzing the probability of Emirati students becoming CFF victims, the authors found that only age, instances of lack of monthly income to cover living costs, and average monthly credit card balance, all have significant and positive explanatory power on the probability of becoming a CFF victim. However, when analyzing the aggregate subsample of all Emirati respondents, only the credit card balance has a positive and significant relationship with such a probability.

Perspectives