Developing Country Studies www.iiste.org ISSN 2224-607X (Paper) ISSN 2225-0565 (Online) Vol.4, No.23, 2014 31 Pattern and Behavioural Approach to Fraudulent Practices in the Informal Economic Setting Okunola, R.A. 1 Lawal, M.O. 2 Kehinde, A.O. 1 1.Department of Sociology, University of Ibadan 2.Department of Leisure and Tourism Management,Federal College of Wildlife Management, New Bussa Niger State Abstract The experience of consumers in recent times has been described in various studies as disastrous and one that portends serious danger to the safety of human life. The frequently reported cases were those that pertained to agricultural food items. It is amusing that consumption of these products that ought to complement nutrient in human life has become source of discomfort and health hazard. Coupled with this was the case of fraudulent practices which were reported as rampant within the traders in public markets. In spite of this, such cases were not given the kind of adequate attention that they deserved by scholars. This study therefore emerged as a response to this with objectives of interrogating the experiences of the victims of this anomaly through the dimension that the fraudulent practices was taking and the management approach being adopted to address it. The study is descriptive in nature: a total of 28 respondents comprising consumers, foodstuff sellers and officials of Foodstuff Sellers Association were involved in the study. Both purposive and snowball sampling procedures were used to reach out to these respondents. Interview guide was the major instrument used to source for data from the respondents in the course of in-depth and key informant interview sessions. All the consumers engaged as respondents here as well as some sellers acknowledged the existence of fraudulent practices within Bodija Market, Ibadan. The common fraudulent practices within this market, according to the findings of this study, included measurement cheat, hoarding of goods and mixture of the products with bad/diseased variety. Only a few of the victims of the fraud reported the matter to the officials of the Market. Measures adopted by the respondents to counter the fraudulent practices include extensive consultation with other consumers who patronized the market over the credibility of the sellers and their wares. There are consumers who go about with their measurement modules (kongo) while in the market to make purchases; this category of people will not buy from any seller except those that allowed the usage of the consumers’ module alone. Recommendations presented emanated from the respondents and were in line with the findings of the study. Keywords: Consumers, Food Stuff, Fraudulent Practices, Kongo, Sellers. INTRODUCTION Though social exchange may differ in forms, it is something that takes place in every society based on rule or trust. Some could be monetary, via business activities, while others could be non-monetary, reflecting service free activities in human interaction. Social exchange takes place both in formal and informal settings. This work, therefore, is an attempt to complement the existing scholarship on monetary aspect of social exchange within the informal setting. This becomes necessary in view of its implication for the moral fabric of society and the sustenance of living. Unethical behaviour, which is precursor to fraud and criminality (Rossouw and Arkhuysn, 2000) can be destructive where no proactive action is taken and may lead to collapse of the entire system. Academic discourse on corruption and/or fraud is not a new phenomenon in the country; the phenomena have attracted the attention of scholars (Anifowose, 2002, Ibrahim, 2003, Aluko, 2002, Nwabueze, 2002, Olaopa, 1998, Maduagwu, 1996, Akindele, 1995) over the years. Though the two concepts (fraud and corruption) are often used interchangeably, there is a need to make a distinction between them, at least for the sake of clarity and for better appreciation of their import in the present study. Corruption is mostly associated with public sector and public officials; for example Joubert (1993) defined corruption as the practice of misuse of public positions. Contrary to this view, Rossouw and Arkhuysn (2000) are of the view that fraud is a phenomenon that is not limited to the public sector. They maintained that public officials, any employee or even outsiders, can be perpetrators of fraud. In view of this, the distinction between corruption and fraud is that corruption implies a third party involvement while fraud does not necessarily imply third-party involvement. In the case of corruption, employees violate duty to principals, they abuse their positions by either accepting or demanding a bribe offered by or demanded from a third party (Coleman, 1989). Though the study of fraud and corruption within the society is often considered attractive, academic investigation of these phenomena has been limited substantially to the formal sector of the economy. The thrust of this study, therefore, is the fraudulent practices in the informal sector particularly among traders/sellers of household consumption items (food stuffs) like rice, beans, salt, palm/groundnut oil to mention but a few. The need for criminological focus of this aspect of the economy was based on its importance to human life. Many consumers of the above mentioned essential materials have been noted to have suffered