I have been interested in fraud research for many years, first in my professional practice as an auditor and forensic accountant, and then as a researcher. I am primarily interested in the factors that lead to fraud and the indicators and effects of fraud. Lately, my interest has focused on crypto-assets-related fraud, as these new technologies introduce new risks and restrictions that both users/investors and regulators face.
The amount of fraud that occurs each year, especially since most are not reported to the relevant authorities. However, this staggering figure should still make potential investors question how to manage the risk they take.
It should be noted that cryptoassets have little or no regulation around the world. Regulators, such as the Autorité des Marchés financiers in Quebec and the Securities and Exchange Commission in the United States, have been working on the issue for some time, but regulation in certain areas has lagged. One reason is the decentralized and borderless nature of these investments, which makes laws and regulations particularly difficult to formulate and enforce.
Investing in crypto assets falls under the umbrella of financial technology, often referred to as fintech. The tools for investing in fintech are very different from traditional financial tools. Investors in fintech are often driven by quick returns that border on speculation.
