Migrant Status and Consumer Financial Fraud in China: A Two-Stage Approach Using a Representative Household Survey

Abstract

Chinese migrants face numerous socioeconomic disadvantages. Little is understood about their vulnerability to consumer financial fraud, which can impede their integration into urban China and hamper the national priority of continued urbanization. This study utilizes nationally representative data from 2015 China Household Finance Survey to investigate migrants’ risk factors for consumer financial fraud across two stages: fraud exposure and victimization. Results reveal a distinct pattern of fraud risks based on migrant status and stages of fraud, partially supporting theories of disadvantaged consumer and routine activity. After adjusting for other factors, urban migrants exhibit a 28.2% higher likelihood of encountering fraud than urban residents, with rural migrants having a 57.3% higher probability of overall victimization. Recent movers face a higher risk. Market and digital engagement emerge as key factors influencing fraud exposure. These results underscore the necessity for targeted policy interventions aimed at fostering inclusive urbanization and promoting rural-urban integration.