As misleading content spreads via deepfakes, fake press releases, or fraudulent social media campaigns, regulatory bodies are under increasing pressure to protect consumers and ensure market integrity.
A new study from the Department of Information Systems and Information Management of the University of Cologne explores new possibilities for how organisations in the financial sector can develop IT-embedded dynamic capabilities to respond to the growing threat of financial fake news (FFN).
In their study “IT-Embedded Dynamic Capabilities for Public Institutions Coping with Disinformation – The Case of Financial Fake News.” the authors, Oliver Rath, Frederic Haase, Johannes Werner Melsbach, Jiarun Liu, and Detlef Schoder, examine real-world disinformation cases and institutional responses, shedding light on the strategic use of IT in public institutions.
At the heart of the study is a taxonomy of FFN schemes that categorises how such fake news operates and what objectives it serves, from manipulating share prices to misleading retail investors. Based on this framework, the researchers identify a set of dynamic IT capabilities that enable institutions to detect, deter, and educate in response to FFN.
In practice, these capabilities include, for example, early warning systems, digital monitoring tools, internal training, and public awareness initiatives. As Crucial, the authors highlight the microfoundations that support these capabilities, the organisational routines, processes, and knowledge that allow institutions to adapt quickly and act effectively in an evolving threat landscape.
Drawing from 378 litigation cases and over 130 strategic documents from financial authorities worldwide, the study offers an empirical foundation for understanding how public institutions operationalise their response to FFN.
While the research focuses on the financial domain, its implications go beyond. The identified IT-enabled dynamic capabilities can serve as a model for other sectors, such as healthcare and politics, where information integrity is equally critical. In this way, the study delivers both academic insight and practical guidance for addressing disinformation in public governance.
- To the study:
Rath, Oliver, Frederic Haase, Johannes Melsbach, Jiarun Liu, and Detlef Schoder. “IT-Embedded Dynamic Capabilities for Public Institutions Coping with Disinformation – The Case of Financial Fake News.” Government Information Quarterly 42, no. 2 (2025): 102024. - Cologne Institute for Information Systems (CIIS)
