Determinants Of Financial Literacy And Investment Fraud: A Systematic Literature Review

Financial literacy refers to the capacity to comprehend, manage, and control one's financial conditions. The ability to make sound financial decisions will be greatly assisted by financial literacy, which revolves around financial, credit, and debt management. Every financial decision made by investors will have an impact on their saving and budgeting, readiness for unexpected life events, planning for retirement, and awareness of risk and return. Thus, the aims of this study are to conduct a systematic literature review in order to investigate and compile awareness of financial literacy and preventing investment fraud that could influence investor decisions. This study adopted Preferred Reporting Items for Systematic review and Meta-Analyses (PRISMA) to collect the relevant literature that is scoped only to the Scopus and Emerald Insight. Systematic Literature Review approach was employed and throughout the process of identification, screening, eligibility and inclusion. The study found out that individuals with strong financial literacy are likely to have a greater intention to invest and are more capable of avoiding fraud. The results are important to the financial world because society and institutions are putting more emphasis on financial literacy to make people more responsible for their own investing.