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The moderating role of Islamic business ethics on Ponzi schemes in the Umrah industry: a fraud triangle theory perspective

The moderating role of Islamic business ethics on Ponzi schemes in the Umrah industry: a fraud triangle theory perspective

Title: The moderating role of Islamic business ethics on Ponzi schemes in the Umrah industry: a fraud triangle theory perspective

Authors:

  1. Nanang Setiawan;
  2. La Ode Sabaruddin;
  3. Noorlailie Soewarno Department: Department of Accounting

Journal Name: International Journal of Ethics and Systems Kinds of Journal: Scopus Q1

Keywords: Ponzi schemes; Umrah business; Umrah fraud; Fraud triangle theory; Islamic business ethics

Abstract::

This study investigates the causes of Ponzi schemes in the Umrah travel industry by applying the fraud triangle framework, which includes pressure, opportunity, and rationalization, and examines the moderating role of Islamic business ethics. The data were collected from 103 owners or founders of licensed Umrah travel companies (PPIU) in Indonesia and analyzed using SEM-PLS. The findings reveal that all components of the fraud triangle significantly influence the occurrence of Ponzi schemes. However, Islamic business ethics do not significantly moderate these relationships. The study suggests that ethical values alone are insufficient to prevent fraud without strong institutional controls. It also emphasizes the importance of collaboration among regulators, industry players, and scholars to strengthen governance and protect stakeholders in the Umrah sector.

For details: https://doi.org/10.1108/IJOES-05-2025-0256

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