Advanced
search

To read this content please select one of the options below:

The effect of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees

Eley Suzana Kasim (Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia)
Noor Rohin Awalludin (Faculty of Business Accounting and Social Sciences, Kolej Poly-Tech MARA – Kampus Bangi, Bandar Baru Bangi, Malaysia)
Nurazilah Zainal (Faculty of Business and Management, Universiti Teknologi MARA, Seremban, Malaysia)
Allezawati Ismail (Faculty of Business Accounting and Social Sciences, Kolej Poly-Tech MARA – Kampus Bangi, Bandar Baru Bangi, Malaysia)
Nurul Huda Ahmad Shukri (Faculty of Business Accounting and Social Sciences, Kolej Poly-Tech MARA – Kampus Bangi, Bandar Baru Bangi, Malaysia)

Journal of Financial Crime

ISSN: 1359-0790

Article publication date: 28 July 2023

Issue publication date: 29 April 2024

621

Abstract

Purpose

This study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees.

Design/methodology/approach

Using a questionnaire survey, data was distributed to 200 retirees. A total of 53 responses were obtained. The data was subsequently analysed using PLS-SEM version 3 software.

Findings

Findings indicated that while financial literacy has a significant influence on awareness, there is no conclusive evidence to support the relationship between financial behaviour and financial stress on awareness. These results highlighted the critical need to strengthen financial literacy among retirees as a prevention mechanism for them to avoid from being scammed.

Research limitations/implications

The finding from this study is relevant to regulators and law enforcement agencies to aid potential and actual retirees by educating them on the danger of investment scams.

Originality/value

As there are relatively few studies conducted on investment scams specifically among retirees, this study extends the investment scam literature by examining the underlying factors that affect their awareness towards the fraudulent activities.

Keywords

Acknowledgements

The authors would like to thank the editors and the anonymous referees of the Journal of Financial Crime. Furthermore, special thanks to Internal Grant of Kolej Universiti Poly-Tech MARA Project Code: 100-TNCPI/PRI 16/6/2 (047/2022) sponsored by Kolej Universiti Poly-Tech MARA; Young Talent Research Grant Project Code: 600-RMC/YTR/5/3 (008/2022) sponsored by Universiti Teknologi MARA; and Accounting Research Institute, Universiti Teknologi MARA as organisations that funded the research. The usual caveats apply.

Citation

Kasim, E.S., Awalludin, N.R., Zainal, N., Ismail, A. and Ahmad Shukri, N.H. (2024), "The effect of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees", Journal of Financial Crime, Vol. 31 No. 3, pp. 652-666. https://doi.org/10.1108/JFC-04-2023-0080

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

Related articles

Manage cookies

We’re listening — tell us what you think

Join us on our journey