Willingness to pay for insurance against mobile money fraud: evidence from Ghana
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Money Laundering Control
Abstract
Purpose – The rapid growth of the mobile money industry has been matched by a rise in mobile money
fraud. The technology required to apprehend perpetrators of such fraud is nonexistent in most developing
countries. Hence, the need for individuals to be willing to pay for insurance against such frauds is crucial. This
paper aims to examine individuals’ willingness to pay for insurance against mobile money fraud in Ghana.
Design/methodology/approach – The paper uses nationally representative data collected from 4,266 adults
(persons 18 years and above) in Ghana. Individuals’ willingness to pay premiums for protection against mobile
money fraud was elicited by a single-bound dichotomous choice and open-ended contingent valuation designs.
Findings – On average, 24.34% of Ghanaians are willing to pay premiums for insurance against mobile
money frauds, with more men (26.37%) being willing than women (22.56%). Similarly, the average
monthly premium that men are willing to pay for protection against mobile money fraud is GH¢32.16
(US$8.16), while that of women is GH¢22.5 (US$5.62). Furthermore, the results show that years of
schooling, income, previous fraud experience, and using the accounts for saving are all positively
associated with willingness to pay. However, using other networks apart from MTN has a negative
association with willingness to pay.
Originality/value – To the best of our knowledge, this is the first study that examines willingness to pay
for insurance against mobile money fraud. Thus, this is the first that estimate quantitatively how much
mobile account holders will pay as premiums for insurance against mobile money fraud.
Description
Research Article
Keywords
Mobile money, Willingness to pay, Fraud, Insurance, Ghana