Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)


Scamming Issues in the Financial Digital Apps among the Elderly

Author(s): Razan Alghriafi, Nouf Alsaadi, Jood Alayedi, Nouf Alhajri, Mahmud Maqsood, Hoda Mahmoud AboAlsmh, Ibrahim Tawfeeq Alsedrah, Zahra Afridi

The current study sought to determine the glaring loopholes in the digital finance sector that have resulted in many elderly members of society being scammed. The research was anchored on the theory of disruptive technology and conducted an explorative literature review to determine the underlying risk factors for the continued scamming of the elderly in the digital financial sector. The use of digital financial apps has gained popularity in the recent past due to their ability to enhance financial inclusion through easy access to financial services. However, lack of regulation, inadequate financial literacy, inadequate due diligence, mismatch of business strategy, susceptibility to scams, and investor overconfidence are some of the financial digital app determinants that have resulted in high scamming rates in the digital financial sector. Therefore, this essay suggested that for increased investor education on the operations of digital financial apps, investors need to conduct due diligence on the underlying opportunities in these digital platforms. They should conduct adequate background checks of the related parties offering the financial services in apps and development of a set of uniform legislations to streamline the operations of the digital financial sector.

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