The Digital Trap: Conceptualizing Investment Scam Vulnerability among Malaysian Young Professional

Abstract

Digital financial services have expanded investment opportunities while increasing exposure to sophisticated investment scams. Despite growing research on investment scam, existing studies examined vulnerability from isolated perspectives, such as financial literacy, behavioural traits, or demographic characteristics. As a result, study on investment scam vulnerability remain fragmented. This conceptual paper proposes an integrated framework to explain digital investment scam vulnerability among Malaysian young working adults by drawing on Social Cognitive Theory, Protection Motivation Theory, and Digital Financial Literacy. The framework argues that vulnerability is shaped by the interaction of individual characteristics, environmental influences, and protective appraisal, with digital financial literacy influencing the effectiveness of protective responses. By integrating these complementary perspectives, the paper extends the current understanding of investment scam vulnerability beyond single-factor explanations and provides a theoretical foundation for future empirical research. The proposed framework also offers practical insights for policymakers, regulators, and financial educators in developing more targeted investor protection and digital financial literacy initiatives.