Social Influence in Behavioral Economics: An Analysis of Fraud through Psychological, Cultural, and Digital Lenses

Abstract

The aim of this article is to examine the impact of social influence on fraudulent decision-making through the lens of behavioral economics, considering psychological, cultural, and digital aspects. The study analyzes the mechanisms through which social environment, cognitive biases, and emotional factors contribute to an individual's propensity for fraudulent activities. The research is based on a survey of individuals convicted under Article 190 of the Criminal Code of Ukraine, which enabled the identification of key factors influencing their behavior and decision-making processes.

The research methodology includes surveys and statistical analysis of the collected data, allowing an assessment of the impact of social connections, trust, risk-taking attitudes, and emotional control on the tendency toward fraudulent activities. Quantitative analytical methods were employed to identify patterns in respondents' answers based on demographic indicators, which helped establish correlations between social influence and the likelihood of engaging in fraudulent schemes.

The findings indicate that a significant proportion of respondents exhibit a high dependence on social approval, a predisposition to risk, and insufficient emotional control, which are key determinants of their behavior. The analysis revealed that social factors such as peer pressure, authority influence, and cognitive biases play a crucial role in shaping fraudulent behavior. Furthermore, it was found that the level of digital literacy and the frequency of social media use impact individuals' susceptibility to fraudulent schemes.

The conclusions highlight the necessity of developing comprehensive measures to prevent fraud by enhancing financial and digital literacy among the population while considering social, psychological, and cultural factors. The obtained results can be utilized to create effective preventive strategies and educational programs aimed at reducing the impact of fraudulent schemes within society.