Financial Literacy, Investment Awareness, Social Influence, and Vulnerability on Online Investment Scheme

Online investment scams have already existed before despite continuous reminders from the authorities. It was noticeable that the number of victims had risen significantly starting from 2019. The purpose of this research was to determine the factors that influence the student’s vulnerability to online investment schemes among students from the School of Business, Management, and Accountancy of Liceo de Cagayan University. It aimed to determine students’ demographic profiles considering sex, age, and economic status. The assessment focused on their financial literacy, investment awareness, social media influence, and vulnerability on online investment schemes. The research used a descriptive-correlational and causal research design. The study showed that the student’s level of investment awareness and vulnerability on online investment schemes were slightly aware of and moderately vulnerable towards online investment schemes. Overall, students’ level of financial literacy was rated good. Therefore, the researchers concluded that online fraudsters target people from different backgrounds, ages, and income levels. Being financially literate alone would not protect people against scammers as they became more intelligent and creative, taking advantage of new technologies and new approaches. As a result, appropriate preventive measures should be explored and implemented.

Keywords: Fraudster, Socialization Agents, Financially Savvy, Ponzi scheme, Student’s Susceptibility