Lokanan Mark, Liu Susan
Faculty of Management, Royal Roads University, Victoria, BC V9B 5Y2, Canada.
Entropy (Basel). 2021 Mar 3;23(3):300. doi: 10.3390/e23030300.
Protecting financial consumers from investment fraud has been a recurring problem in Canada. The purpose of this paper is to predict the demographic characteristics of investors who are likely to be victims of investment fraud. Data for this paper came from the Investment Industry Regulatory Organization of Canada's (IIROC) database between January of 2009 and December of 2019. In total, 4575 investors were coded as victims of investment fraud. The study employed a machine-learning algorithm to predict the probability of fraud victimization. The machine learning model deployed in this paper predicted the typical demographic profile of fraud victims as investors who classify as female, have poor financial knowledge, know the advisor from the past, and are retired. Investors who are characterized as having limited financial literacy but a long-time relationship with their advisor have reduced probabilities of being victimized. However, male investors with low or moderate-level investment knowledge were more likely to be preyed upon by their investment advisors. While not statistically significant, older adults, in general, are at greater risk of being victimized. The findings from this paper can be used by Canadian self-regulatory organizations and securities commissions to inform their investors' protection mandates.
保护金融消费者免受投资欺诈一直是加拿大反复出现的问题。本文旨在预测可能成为投资欺诈受害者的投资者的人口特征。本文的数据来自加拿大投资行业监管组织(IIROC)2009年1月至2019年12月的数据库。总共有4575名投资者被列为投资欺诈受害者。该研究采用机器学习算法来预测遭受欺诈的可能性。本文所采用的机器学习模型预测,欺诈受害者的典型人口特征是女性投资者,她们金融知识匮乏,与顾问有过交往且已退休。那些金融知识有限但与顾问有长期关系的投资者成为受害者的可能性较低。然而,投资知识水平低或中等的男性投资者更容易被其投资顾问欺骗。总体而言,老年人虽无统计学上的显著差异,但受害风险更大。加拿大的自律组织和证券委员会可利用本文的研究结果来履行其投资者保护职责。