Page 50 - SC SCAR 2023 ENGLISH Flipbook

PART 2 REGULATORY PERFORMANCE AND OUTCOMES
Behavioural Analysis on Investor Vulnerability to Scams
With many investors now being at a greater risk of becoming victims of financial frauds and financial exploitation, the SC had in 2023 carried out a behavioural analytics study to assess investors’ behaviour and attitude towards investment, challenges and capabilities in their investment journey and their vulnerability towards scams.
The study was done through a survey of 1,302 respondents comprising the following demographics:
Gender
50.8% Male
Average age: ~36 years old
49.2% Female
44%
B40
<RM5,000
34.3%
18-20 years old
36.6%
31-40 years old
26.2%
41-54 years old
18% T20
>RM11,000
5.8%
55-80 years old
Gross monthly household income
38% M40
RM5,000- RM10,999
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SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023
Based on the sampling, the results showed that 384 out of 1,302 or 30% of the respondents were more susceptible to scams. From this susceptible group, the following observations were made:
• 59% were male;
• 34% were young adults aged 31 – 40 years;
• 44% belong to the B40 households; and
• 70% held at least a diploma qualification.
The study also showed that the vulnerable group relied on family and friends to make investment decisions rather than relying on their own judgment, experience, and knowledge. They were also more persuaded to invest in a scheme following the influence of unlicensed and unqualified individuals. These findings imply an increased willingness by this group to be exposed to investment opportunities that includes scams.
The findings from the study have assisted the SC to better understand the profile of the vulnerable investor group and served as an important input when formulating the necessary interventions through targeted outreach programmes.