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County trajectories of pyramid scheme victimization
Sarah J Greenman1,2, Samantha Snyder3, Stacie Bosley3
1Criminal Justice and Forensic Science, Hamline University, Saint Paul, MN USA.
Crime, Law, and Social Change
|September 15, 2022
Summary
Community vulnerability to pyramid scheme fraud is linked to local strain and opportunity factors. Social vulnerability and unemployment rates significantly impact victimization, while social capital shows a complex relationship with fraud.
Area of Science:
- Sociology
- Criminology
- Public Health
Background:
- Pyramid scheme fraud poses a significant threat to communities.
- Understanding community-level vulnerability is crucial for effective prevention strategies.
Purpose of the Study:
- To explore the relationship between place-based factors (strain and opportunity) and pyramid scheme adoption.
- To identify distinct trajectories of pyramid scheme participation.
Main Methods:
- Utilized national victim data from a pyramid scheme fraud case (2000-2013).
- Employed group-based trajectory modeling (GBTM) to analyze join rates.
- Measured strain using the Social Vulnerability Index and unemployment rate.
- Assessed opportunity/protection through social capital variables.
Main Results:
- County-level strain, including Social Vulnerability Index and unemployment, is associated with pyramid scheme victimization, particularly early adoption.
- Social capital variables exhibit a nuanced, complex relationship with fraud victimization.
- Distinct trajectories of pyramid scheme participation were identified.
Conclusions:
- Place-based strain is a significant factor in pyramid scheme victimization.
- Social capital's role in mitigating or exacerbating fraud risk requires further investigation.
- Findings can inform localized preventative and monitoring strategies for pyramid scheme fraud.
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