Understanding the Vulnerabilities Contributing to Investor Victimization in Scams

Norlaila Md Zin13, Salwa Muda1*, Eley Suzana Kasim1,4, Norhidayah Ismail1, Hazlina Mohd Padil2, Rosniza Ramli1

https://doi.org/10.62271/pjc.16.3.1053.1072

Abstract
Investment scams pose significant threats to individuals and the economy of Malaysia, exploiting psychological vulnerabilities and technological advancements to deceive unsuspecting investors. This study investigates the multifaceted factors driving the occurrence of investment scams in Malaysia. Drawing on interviews with officers from the Royal Malaysia Police, this research provides valuable insights into the dynamics of investment scams. Through meticulous analysis, the study identifies key factors contributing to the proliferation of scams, including the allure of quick wealth, digital technology’s influence, demographic, financial literacy gaps, and regulatory inadequacies. By comprehensively examining these factors, the study aims to deepen understanding and propose targeted interventions for effectively combating investment scams and safeguarding potential victims.

Keywords: Investment scams, External Factors, Internal Factors