Inside Rotating Credit Association: the Deceived and Deceivers

Among them, 39% were once s RCA fraud victim. However, 60% fraud happened in 10% victims. More than 50% victims never took any action to compensate their monetary loss. （2） Females lived in suburban area with more supports from friends were more likely to participant RCAs.

The most attraction about RCAs was a way to save money, to earn tax-free high interests and exchange interpersonal favors. （3） The RCA deceivers were more likely to be middle-age married men. They often violated members’ trust and used the members’ absence of monthly meetings as opportunities to commit fraud. Deceivers perceived themselves differently from the “real criminal”.

Instead of feeling guilty or shameful, they sensed no problems of re-integrating to community after serving their time in prison. （4） Frequent female participants who were easy to be taken advantaged, joined more RCAs at the same time with high monthly payments were more likely to be RCA fraud victims. Suggestions on how to select safe RCAs are made. Government promotion of legal rights and obligations of participating RCAs is highly encouraged.

It is also important that modern financial and risk management skills are introduced to students in school.