Rick Wash

Professor,
University of Wisconsin, Madison

Contact Info

Decoding Deception: An Integrated Cognitive Model of User Response to Online Bank Fraud Attempts

by: Solveig Bourgeon, Ed Fitzhugh, Jurjen Jansen, and Rick Wash

Abstract

Highlights

• Combines Dual Process Theory, Wash’s Theory of Suspicion Formation, and Protection Motivation Theory
• Develops a new model of how individuals detect and respond to email-based fraud
• Tests this model using a survey, and finds much support for the model
• Refines the model based on these tests
• Illustrates how this model can be used both by researchers and practitioners

In recent years, there has been a significant increase in both the prevalence and complexity of online fraud, with fraudsters often relying on social engineering techniques to convince individuals to voluntarily disclose sensitive information or transfer their money. This study aims to advance our understanding of the psychological dimensions of fraud by integrating three complementary theories grounded in psychology and human behaviour: Dual Process Theory (DPT; System 1 and 2), Wash’s Model of Suspicion Formation (MSF), and Protection Motivation Theory (PMT).

We propose a holistic model of decision-making in the context of fraud detection and response. This model accounts for the initial sense-making and suspicion formation a user experiences when receiving fraud content (MSF), explores a user’s cognitive shift from an intuitive response of System 1 to the more deliberative response of System 2 (DPT) and, describes how, once shifted to System 2, people respond more systematically to an instance of fraud (PMT).

We derived and tested ten hypotheses through a survey of over 500 U.S. respondents, who were presented with a simulated phishing email modeled on actual bank fraud scenarios. The findings largely support the hypotheses, though a subset were either partially supported or refuted. These findings lead to a refined version of our proposed model. This study provides a theoretical framework for understanding fraud-related decision-making and offers a foundation for future research and the development of more realistic fraud education and awareness initiatives, grounded in human behaviour and psychology.