Published since September 1958

№ 7/2023

Ekon Ukr. 2023 (7): 57–71https://doi.org/10.15407/economyukr.2023.07.057

FINANCE. TAXES. CREDIT

УДК 330.1:343

JEL: D310, Е290, К140

¹Khmelnytskyi National University, Research ID : http://www.researcherid.com/rid/https://www.scopus.com/authid/detail.uri?authorId=57189354571
OrcID ID : https://orcid.org/http://orcid.org/0000-0003-4405-9429

CAUSES OF INVESTMENT FRAUD AND SUGGESTIONS TO PREVENT IT

The main causes of investment fraud are highlighted. Among them the following are named: the desire to invest and receive profits (usually, with inflated requirements for potential profits, unrealistic estimation of return on invested funds and probable profitability of any investment projects); lack of attractive and clear proposals for investing one\\\'s funds or lack or unavailability of information about objects and projects for investment; lack of knowledge about independent management of investment resources. The work algorithm of investment fraudsters is studied. It consists in step-by-step provision of information on pseudo-investments and, accordingly, step-by-step \\\"draining\\\" gullible investors of their funds according to thought-out beforehand fraud instructions.
The available legal proposals for investing funds, which are implemented today and which are expedient to use in the future to preserve and increase one\\\'s financial resources, are analyzed. Among them: placement of funds on deposits in banks, purchase of bonds (including war bonds); starting, running, developing a business. It is noted that potential investors should pay attention to the Investment Passports of Territories and Communities, Subsurface User’s Investment Atlas, which contain descriptions of objects for investment. It is substantiated that for potential investors who, for various reasons, cannot independently manage business and investment projects, it is expedient, at the state and local authorities levels, to organize projects, which will both deliver positive outcomes for investors and bring about synergistic positive effects. It is noted that at the state level, it is necessary to react as quickly as possible to the emergence of illegal, criminal fraud schemes, and all citizens, so as not to fall into the fraudsters’ “snare”, should improve their financial and economic literacy and psycho-emotional stability.

Keywords:investment resources; investment; projects; fraud; investment fraud; business; passive income.

Article original in Ukrainian (pp. 57 - 71)

Download

Downloads :127

The article was received by the Editorial staff on April 28 , 2023

References
1. Guk O., Mokhonko H., Shenderivska L. Investment trends in Ukraine. Economy and Society, 2021, No. 29 [in Ukrainian].

2. Imad A. Moosa, Ebrahim Merza. The effect of COVID-19 on foreign direct investment inflows: stylised facts and some explanations. Future Business Journal, 2022, Vol. 8, No. 20.
doi.org/10.1186/s43093-022-00129-5

3. Horodnichenko Yu. Ways to attract foreign direct investment in Ukraine. University Economic Bulletin, 2021, Vol. 50, pp. 168-173. URL: nbuv.gov.ua/UJRN/ecvu_2021_50_21 [in Ukrainian].
doi.org/10.31470/2306-546X-2021-50-168-173

4. Dykha M.V., Dykha V., Zyma V. Foreign direct investments in the economy of Ukraine: status, trends and prospects attraction. Scientific Herald of Ivano-Frankivsk National Technical University of Oil and Gas. Economy and management of oil and gas industry, 2022, No. 2 (26), pp. 53-64. URL: eung.nung.edu.ua/index.php/ecom/article/view/523 [in Ukrainian].

5. Dykha M.V., Polozova V.M., Orlov V.V. Venture industry in Ukraine: state, problems and ways to solve them. Economics, Management and Administration, 2022, No. 2 (100), pp. 54-61. URL: ema.ztu.edu.ua/article/view/261812 [in Ukrainian].

6. Pedchenko N., Strilec V., Kolisnyk G.M., Dykha M.V., Frolov S. Business angels as an alternative to financial support at the early stages of small businesses' life cycle. Investment Management and Financial Innovations, 2018, Vol. 15, Iss. 1, pp. 166-179.
doi.org/10.21511/imfi.15(1).2018.15

7. Dykha M.V. Socio-economic development of Ukraine: directions and means of realization. Kyiv, 2016 [in Ukrainian].

8. Shevchuk V.Ya., Bakhurynskyi V.S. How to combat corporate raiding and corruption in Ukraine. Kyiv, 2019 [in Ukrainian].

9. Savchenko A.V. Crimes in the sphere of economic activity according to the criminal legislation of Ukraine and the USA: a comparative analysis. Topical problems of legal science in the scientists' studies. Supplement to the journal \\\"Police of Ukraine\\\", 2005, No. 40, pp. 16-20 [in Ukrainian].

10. Dykha M.V., Liamets I. Foreign trade activity of Ukraine: state, problems, prospects. Scientific Herald of Ivano-Frankivsk National Technical University of Oil and Gas. Economy and management of oil and gas industry, 2021, No. 1 (23), pp. 108-117. URL: eung.nung.edu.ua/index.php/ecom/article/view/324/303 [in Ukrainian].

11. Dykha M.V., Tanasiienko N.P., Kolisnyk G.M. Ensuring of labor productivity growth in the context of investment and innovation activity intensification. Problems and Perspectives in Management, 2017, Vol. 15, Iss. 4, pp. 197-208.
doi.org/10.21511/ppm.15(4-1).2017.04