LAUSR

This study estimates the prevalence of consumer fraud in China and investigates consumer fraud risk factors using a novel two-stage conceptual framework that differentiates fraud exposure from fraud victimization after exposure. Multivariate analyses show that multiple risk factors have opposite effects on the two stages, with older age, lower income, higher debt, lower education, and rural residency associated with a lower risk of fraud exposure but a higher risk of fraud victimization after exposure. Three variables are identified as risk factors in both processes: being a migrant, having a higher level of objective financial knowledge, and having at least one chronic condition. Our conceptual model and empirical results demonstrate the importance of utilizing a two-stage approach in consumer fraud victimization research that may help clarify the many mixed findings in the literature.