The relationship between financial literacy and fraud detection between generation X and Y Filipinos in Metro Manila, Philippines

• Main Authors: Castañeda, Elijah Climaco, Mariano, Eric Paul, Zurbano, Mark Ildefonso M., III
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Fraud > Philippines; Financial literacy > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etdb_finman/7; https://animorepository.dlsu.edu.ph/context/etdb_finman/article/1011/viewcontent/Castaneda2.pdf
• Institution: De La Salle University

The period of the COVID-19 pandemic saw a rise in financially fraudulent activities such as investment scams, donation scams, and phishing scams. As trends of growing use of financial technology applications and the digitalization of finance, a greater number of Filipinos were becoming part of a financially inclusive economy. For fraudsters, this provided them with opportunities to defraud more people of their hard-earned funds. However, studies on consumer fraud detection in the Philippine setting is quite limited. Therefore, this study aimed to determine the likelihood of Filipinos to detect financially fraudulent schemes based on their level of financial literacy which was measured by both their financial knowledge and their financial behavior, as well as the generation to which they form part. To conduct this research, the researchers made use of a quantitative research design with the aid of a survey questionnaire to which the researchers can gather information on the demographics, financial knowledge, financial behavior, and probability to which Filipinos can detect financially fraudulent schemes. The study had 103 respondents each of Generation X and Generation Y. R Studio was used to analyze the statistical data gathered by the researchers. Based on the results, no significant effect was found from financial literacy to one’s propensity to detect fraud. However, it was determined that financial behavior was a significant predictor of fraud detection. Recommendations for investors, financial educators, government agencies, and researchers were discussed in this paper