Ponzi operandi: affinity fraud risk for shariah compliant investment funds
Date
2012
Authors
Nathie, M.
Drew, J.M.
Drew, M.E.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Journal article
Citation
ISRA International Journal of Islamic Finance, 2012; 4(1):7-37
Statement of Responsibility
Conference Name
Abstract
Ponzi schemes using the principles of affinity fraud are a real and current risk for Islamic investors. This paper examines the use of affinity fraud in targeting the Islamic community and alyses Shari'ah norms that seek to protect people from fraud and cheating. Using case studies from three countries, the paper identifies the common traits pervasive in Ponzi schemes including legal ruses aimed at circumventing the Shari'ah interdiction on interest and other proscriptive acts by unscrupulous and fraudulent operators. The examition shows that the scent Islamic fince market should be vigilant of copycat schemes that have the potential to undermine the industry. Like other affinity frauds, there is the need to develop early warning systems aimed at preventing, or at least minimising, the prevalence of such schemes in the Islamic fincial industry.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
Copyright 2012 Griffith University