1

Chapter I
INTRODUCTION

Background of the study

At the age of digitalization and modern era, online

investment scheme becomes one of the most popular form of

avenue of earning income. Online investment schemes have

risen and become a noticeable trend not only in major

cities but also in rural and semi-urban communities

across the Philippines. These scheme offers quick and

high returns with little to no effort, which makes them

appealing to individuals looking for financial

opportunities, and it is often marketed through social

media and messaging platforms. Unfortunately, many of

these are scams or Ponzi schemes that leave participants

at a loss, financially and emotionally.

In rural municipalities like Laoang, Northern Samar,

the lack of financial literacy and limited access to

verified investment information heightens the risk of

falling victim to such scams, the spread of this schemes

becomes even more concerning.

According to a study conducted at De La Salle

University, there is a direct correlation between

financial literacy and the ability to detect fraud;

individuals with higher financial awareness are

 2

significantly more likely to avoid online investment

scams.1

Several studies have explored how factors such as

education level, income, digital skills, and financial

knowledge influence people’s investment decisions. The

research found that educational attainment and marital

status significantly influence financial literacy levels,

while average income and savings had minimal impact. This

suggest that individuals with lower educational

backgrounds may be more susceptible to fraudulent

investment schemes due to limited financial studies.2

Another study explored the use of online trading portals

by Filipino investors and found that although digital

platforms are popular among young professionals,

perceived ease of use and behavioral attitudes can lead

to overconfidence, potentially increasing susceptibility

to online scams3.

A 2022 qualitative study conducted by researchers at

Central Philippine University also revealed that younger

individuals—particularly Gen Z—are frequently lured into

1
De La Salle University. “The relationship between financial literacy
and fraud detection between generations in the Philippines”. Retrieved
from https://animorepository.dlsu.edu.ph/etdb_finman/7/

2
Bangco, M. A. B., Serdoncillo, R. L., & Javellana, J. B. (2022).
Determinants of Financial Literacy in MIMAROPA, Philippines. Journal of
Economics, Finance and Accounting Studies, 4(2), 97–104. Retrieved from
https://www.al-kindipublisher.com/index.php/jefas/article/view/2704

3
Chua, R. G. (2014). Assessment on the Use of Online Trading Portal of
Some Investors in the Philippines. ResearchGate. Retrieved
from https://www.researchgate.net/publication/265599368_Assessment_on_the_Us
e_of_Online_Trading_Portal_of_Some_Investors_in_the_Philippines
 3

fraudulent online investments due to social influence and

deceptive marketing tactics on social media platforms.4

These findings underscore the urgent need for localized

awareness programs and stronger financial literacy

initiatives, especially in semi-urban and rural

municipalities like Laoang.

Despite these findings, there is still limited

research focused on rural communities like Laoang, where

social and economic conditions may uniquely shape

investment behavior. There is a pressing need to

understand how demographic profiles, levels of awareness,

and behavioral patterns interact to influence the spread

of online investment schemes in such contexts. This

research aims to fill that gap, offering insights that

can help shape targeted educational campaigns and local

policy responses.

4
Central Philippine University. (2022). Trapped in an investment scam:
Lived experiences of Gen Zers. Retrieved
from https://repository.cpu.edu.ph/bitstream/handle/20.500.12852/2709/08_CPU
MRJ_BedonaMLC_2022.pdf
 4

Objectives of the study

This study aims to investigate the factors

associated with the spread of online investment schemes

in Laoang, Northern Samar.

Specifically, this study aims to:

1. Determine the profile of the respondents:

a. Age

b. Gender

c. Highest Educational Attainment

d. Occupation

e. Source of Income

2. Determine the factors associated with the spread

of online investment schemes in terms of:

2.a. Level of awareness and understanding of

online investment schemes

2.b. Likelihood of investing in such schemes.

3. Find out the significant relationship between the

profile of the respondents and the level of

awareness and understanding of online investment

schemes.

4. Find out the significant relationship between the

profile of the respondents and the likelihood of

investing in such schemes.

 5

5. Determine the relationship between online

investment scheme awareness and the likelihood of

investing in such schemes.

Significance of the study

The result of the study could help the following:

Residents. This study will help the residents of

Laoang better understand the risks involved in online

investment scheme. By highlighting common behaviors and

level of awareness, the findings can guide individuals in

making smarter and safer financial decisions ultimately

helping them avoid falling victim to scams.

Local Authorities. The findings of this study can

help local authorities develop more targeted awareness

campaigns, policy interventions, and regulatory measures

to protect residents from deceptive investment practices.

With a clearer understanding of how and why these schemes

spread, officials can take more effective steps to

safeguard the community.

Educators and Schools. Educators can use the results

to design or enhance financial literacy programs that are

more responsive to the needs and vulnerabilities of

students and community members, particularly in the

context of digital and online transaction.

 6

Policy makers. The study will help policy makers

provide evidenced based insights that can support the

creation of local policies or ordinances aimed at

promoting online safety, regulating digital financial

activities, and protecting consumers – particularly in

rural areas like Laoang where awareness and enforcement

may be limited.

Future Researchers. The findings of the study will

serve as a reference for future researchers who are

interested in exploring related topics particularly on

factors contributing to the spread of online investment

schemes.

Scope and Limitation of the study

This study will focus on identifying and analyzing

the factors associated with the spread of online

investment schemes in Laoang, Northern Samar. It will

seek to examine the demographic profiles of selected

residents, factors associated with the spread of online

investment schemes in terms of their level of awareness

and understanding of online investment schemes, and their

likelihood of investing in such schemes. The research

also aims to establish significant relationships between

 7

demographic variables, awareness levels, and investment

behavior.

The study is limited to selected residents of

Laoang, Northern Samar within Poblacion area, and does

not include individuals from other municipalities or

provinces. Data will be collected through survey

questionnaires, which rely on the honesty and memory of

the respondents, which means there might be some

inaccuracies due to personal bias or forgetfulness. This

research will not cover the full legal aspects of online

investment schemes or specific case investigations.

Additionally, while the study does consider some

factors like peer influence and economic situations, it

won’t explore all possible reasons, like cultural beliefs

or personal psychology, that may affect why people join

these schemes. The results and conclusions drawn from

this research are context-specific and may not be

generalizable to other populations or regions.

Theoretical Framework

This study will be anchored on several theories that

explain individuals' decision-making behaviors,

susceptibility to fraud, and the influence of social and

psychological factors in financial decision-making.

 8

The Theory of Planned Behavior (TPB) by Icek Ajzen,

posits that an individual's behavioral intentions are

influenced by three components such as attitude toward

the behavior, subjective norms, and perceived behavioral

control. In the context of online investment schemes,

this theory helps explain why individuals may be inclined

to invest based on positive attitudes towards quick

return, social pressure from peers or community members,

and the belief that they understand or can manage the

risks involved.5 This theory is particularly relevant for

assessing how social pressure and perceived ability to

evaluate investments impact behavior.

Albert Bandura’s Social Learning Theory emphasizes

that people learn behaviors through the observation of

others, imitation, and modeling. In the spread of online

investment schemes, individuals may be influenced by

testimonials from friends, family, or social media

influencers who claim to have profited.6 This theory

highlights the strong role that social proof and

observational learning play, particularly in close-knit

communities like Laoang, where personal recommendations

5
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational
Behavior and Human Decision Processes, 50(2), 179–211. Retrieved from
https://doi.org/10.1016/0749-5978(91)90020-T.

6
Bandura, A. (1977). Social Learning Theory. Englewood Cliffs, NJ:
Prentice Hall. Retrieved from https://www.simplypsychology.org/bandura.html.
 9

and visible success can strongly affect investment

decision-even when risks are not fully understood.

The Fraud Triangle, developed by criminologist

Donald Cressey, proposes that fraud occurs when three

elements are present: pressure, opportunity, and

rationalization. This model offers a psychological

explanation for why individuals may fall prey to online

investment schemes. Financial pressure, particularly in

economically vulnerable areas, can push individuals

toward risky investments. Opportunities presented by

easily accessible online schemes, coupled with the

ability to rationalize participation ("everyone else is

doing it" or "there's little to lose"), create fertile

ground for fraudulent activities to flourish.7 This theory

is critical in understanding the psychological

motivations behind why individuals, even when aware of

potential risks, still fall victim to fraudulent

investments.

Conceptual Framework

This study assume that the profile of the

respondents in terms of age, gender, educational

attainment, occupation, and source of income has

7
Cressey, D. R. (1953). Other People's Money: A Study in the Social
Psychology of Embezzlement. New York: Free Press. Retrieved
from https://www.researchgate.net/publication/321038302_Fraud_Triangle_Theor
y_and_Fraud_Diamond_Theory.
 10

something to do with the factors associated with the

spread of online investment schemes in terms of their

level of awareness and understanding of online investment

schemes, and their likelihood of investing in such

schemes. Moreover, this study also assume that there is a

significant relationship between online investment scheme

awareness of the respondents and the likelihood of

investing in such schemes.

To concretize this concept, an illustration is shown

below:

Profile of the
respondent in terms
Paradigm of:
a. Age
Independent Variable
b. Gender Dependent Variable

c. Highest
educational
attainment
d. Occupation
e. Source of income

Likelihood Level
of of awareness
and understanding of
investing in online
online
investment schemes. investment
schemes.
 11

Fig. 1: Shows the relationship between the independent

and the dependent variables.

Hypotheses

There is no significant relationship between the

profile of the respondents and their level of awareness

and understanding of online investment schemes.

There is no significant relationship between the

profile of the respondents and their likelihood of

investing in online investment schemes.

There is no significant relationship between level

of awareness and understanding of online investment

schemes and the likelihood of investing in such schemes.

Definition of terms

To give clearer understanding of this study, the

following terms are defined as follows:

Awareness. Conceptually and operationally the

quality and state of being aware.

Likelihood of Investing. Conceptually, pertains to

the perceived probability or intention of an individual

 12

to engage or participate in online investment activities.8

Operationally, refers to probability of participating in

online investment schemes, regardless of whether they

have already done so.

Online Investment Schemes. Conceptually, these are

investment programs offered through the internet that

often promise high returns with little or no risk, many

of which may be fraudulent or illegal.9 Operationally,

refers to programs encountered by respondents on

platforms such as Facebook, messaging apps, and websites,

claiming high profits for minimal capital input.

Understanding. Conceptually and operationally refers

to an individual’s depth knowledge.

8
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational
Behavior and Human Decision Processes, 50(2), 179–211. Retrieved
from https://doi.org/10.1016/0749-5978(91)90020-T.

9
Securities and Exchange Commission Philippines. (2023). Investor
Alerts. Retrieved from https://www.sec.gov.ph.
 13

CHAPTER II

REVIEW OF LITERATURE

One of the most prominent factors influencing the

spread of online investment schemes is financial

literacy. Financial literacy encompasses an individual's

ability to understand and apply various financial

concepts and tools to make informed decisions. Research

suggests that individuals with a strong foundation in

financial knowledge are more likely to recognize

fraudulent investment offers and avoid scams. Conversely,

those with low financial literacy, which is prevalent in

many rural communities, are at greater risk of falling

victim to such schemes due to limited exposure to

financial education, poor understanding of investment

risks, and general unawareness of fraudulent warning

signs.10

Similarly, yet distinct in nature, is the issue of

digital literacy. While financial literacy pertains to

money management, digital literacy involves the ability

to critically navigate and evaluate online content and

platforms. Unfortunately, in areas like Laoang, access to

technology remains limited, and many residents are

unfamiliar with online processes. Consequently, their

10
Nicolini, G., et al. (2023). Financial literacy: Identification of the
challenges, needs, and difficulties among adults living in rural areas.
MDPI. Retrieved from https://www.mdpi.com/2077-0472/14/10/1705
 14

ability to discern legitimate investments from scams is

severely hindered. To address this concern, the Bangko

Sentral ng Pilipinas (BSP) introduced a Digital Literacy

Program aimed at increasing public confidence in digital

financial tools while reducing vulnerability to online

fraud.11

Moreover, beyond literacy issues, socioeconomic

conditions also intensify susceptibility. Financial

instability or hardship often compels individuals to seek

out quick-return opportunities—however dubious they may

be. Unlike those in more secure financial positions,

financially distressed individuals may perceive these

schemes as viable lifelines. Supporting this, recent

studies highlight that traits such as financial fragility

and social isolation significantly elevate the risk of

falling victim to fraud, primarily because such states

impair rational decision-making.12

Equally important is the role of social influence,

particularly within peer networks and through social

media. Whereas institutional warnings and regulations may

be overlooked, endorsements from trusted friends or

family members can strongly sway investment decisions. A

11
Bangko Sentral ng Pilipinas. (n.d.). Inclusive Finance - Financial
Education. Retrieved from https://www.bsp.gov.ph.

12
Investopedia. (2023). Common Traits of Financial Fraud Victims.
Retrieved from https://www.investopedia.com/common-traits-of-financial-
fraud-victims-11711737.
 15

study on university students showed that recommendations

from peers—especially those shared online—increased

participants' willingness to engage with fraudulent

schemes.13

Nevertheless, institutional and regulatory

interventions serve as critical counterbalances to these

social and economic pressures. Unlike passive awareness

campaigns, active measures from regulatory bodies, such

as those initiated by the Securities and Exchange

Commission (SEC), seek to curtail scams through both

education and law enforcement. In particular, the SEC’s

collaboration with the Department of the Interior and

Local Government (DILG) exemplifies a multi-sectoral

effort aimed at strengthening local governance and

enhancing grassroots-level financial literacy.14

Camins et al. (2023) conducted a study among

students at Liceo de Cagayan University, revealing that

while financial literacy is often perceived as a

protective factor against investment fraud, it does not

necessarily shield individuals from falling victim to

13
Camins, D. R., Daaca, J. K. M., Florentino, A. L. D., Macasero, H. P.,
& Sinsuat, R. E. (2021). Financial literacy, investment awareness, social
influence, and vulnerability on online investment scheme. Advancing Business
and Accountancy Research. Retrieved from
https://asianscientificjournals.com/new/publication/index.php/abar/article/
view/1574/0.

14
Ponco-Estares, K. (2023). SEC, DILG merge to promote financial
literacy, combat investment scams. Philippine Information Agency. Retrieved
from https://pia.gov.ph/sec-dilg-merge-to-promote-financial-literacy-combat-
investment-scams/.
 16

scams. The study found that students with moderate to

high financial knowledge still engaged in questionable

investment behaviors. This suggests that financial

literacy alone may not be sufficient to prevent

susceptibility to online investment schemes.15

The role of social influence in investment decisions

is significant, as highlighted by Balogun et al. (2024)

in their study on internet users' perceptions of online

investment fraud in Nigeria. The researchers found that

peer influence, inadequate financial regulation, and

over-reliance on informal advice networks made

individuals particularly susceptible to scams. Users

often trusted information shared within social media

groups or among friends without verifying its legitimacy.

This scenario is comparable to the Philippine experience,

where informal networks and social validation

significantly influence investment behavior. The lack of

strong regulatory oversight and accessible information

mechanisms in both contexts fosters a high-risk

environment for financial exploitation.16

15
Camins, D. R., Daaca, J. K. M., Florentino, A. L. D., Macasero, H.
P., & Sinsuat, R. E. (2023). Financial literacy, investment awareness,
social influence, and vulnerability on online investment scheme. Advancing
Business and Accountancy Research, 8(1). Retrieved from
https://asianscientificjournals.com/new/publication/index.php/abar/article/
view/1574/0
16

Balogun, O. S., Akangbe, T. A., Fagbamila, O. D., & Aigbovbioisa, F.

O. (2024). Internet users’ perception of the prevalence of online investment
fraud and victimisation in Nigeria. Gusau Journal of Sociology, 4(2), 169–
181. Retrieved from https://doi.org/10.57233/gujos.v4i2.13
 17

Zhu et al. (2023) investigated the influence of

product recommendations on investor behavior,

particularly among users from low socioeconomic

backgrounds. The study concluded that algorithm-driven

suggestions on digital platforms disproportionately

affected vulnerable users, often steering them toward

poor investment choices. These recommendations created an

illusion of credibility and urgency, leading to impulsive

decisions. Given the growing use of social media and e-

commerce in the Philippines, similar risks are emerging.

Many online investment scams mimic the style of

legitimate digital marketing, blurring the line between

authentic financial advice and deceptive schemes. This

study highlights the importance of digital literacy

alongside financial education to help users critically

assess online content.17

In the Philippines, the utilization of financial

technology (fintech) tools like GCash and GStocks among

young Filipinos was assessed to understand their impact

on savings and investment behavior. The researchers

discovered that fintech adoption is influenced by

demographic factors such as age, education, income level,

17
Zhu, R. R., He, C., & Hu, Y. J. (2023). The effect of product
recommendations on online investor behaviors. arXiv. Retrieved from
https://doi.org/10.48550/arxiv.2303.14263
 18

and digital accessibility. Younger users with higher

educational attainment were more likely to engage with

fintech platforms, suggesting that technological

familiarity is critical in shaping investment choices.

However, the study also implied that while fintech tools

increase access to financial services, they may also

create new avenues for exposure to fraudulent investment

opportunities, especially when users lack adequate

financial discernment. This observation underscores the

importance of coupling digital access with financial

education to safeguard users against online schemes.18

Finally, the OECD Capital Market Review of the

Philippines (2024) emphasized the urgent need for

comprehensive financial education and stronger consumer

protection. The review pointed out that although

participation in capital markets is growing, many

Filipinos still lack the knowledge and tools necessary to

make informed investment decisions. This knowledge gap is

especially problematic in rural areas where access to

formal financial education is limited. Furthermore, the

OECD stressed that improving financial education should

be a coordinated effort involving educational

18
Sereno, S. B. III. (2024). Assessment on the utilization of financial
technology tools for savings and investment opportunities. ResearchGate.
Retrieved from
https://www.researchgate.net/publication/386424054_Assessment_on_the_Utiliza
tion_of_Financial_Technology_Tools_for_Savings_and_Investment_Opportunities
 19

institutions, regulators, and financial service

providers. By equipping individuals with better

understanding and access to credible information, the

spread of misleading investment schemes could be

significantly reduced.19

19
OECD. (2024). OECD Capital Market Review of the Philippines 2024.
Retrieved from https://www.oecd.org/en/publications/oecd-capital-market-
review-of-the-philippines-2024_80
 20

CHAPTER III

METHODOLOGY

Locale of the study

This study will be conducted at Laoang, Northern

Samar, specifically in the Barangays of Poblacion.

Laoang is a coastal municipality in the province of

Northern Samar. It has 56 barangays. The municipality has

a land area of 246.94 square kilometers or 95.34 square

miles which constitutes 6.68% of Northern Samar's total

area. Its population as determined by the 2020 Census was

60,607. This represented 9.48% of the total population of

Northern Samar province, or 1.33% of the overall

population of the Eastern Visayas region. Based on these

figures, the population density is computed

at 245 inhabitants per square kilometer

or 636 inhabitants per square mile.20

According to the 2015 Census, the age group with the

highest population in Laoang is 10 to 14, with

8,248 individuals. Conversely, the age group with the

lowest population is 80 and over, with 569 individuals.21

The municipal center of Laoang is situated at

approximately 12° 34' North, 125° 1' East, in the island

20
PhilAtlas. (n.d). Laoang, Northern Samar Profile. Retrieved from
https://www.philatlas.com/visayas/r08/northern-samar/laoang.html
21

Loc. cit.
 21

of Laoang. Elevation at these coordinates is estimated

at 5.4 meters or 17.7 feet above mean sea level.22

Based on the great-circle distance (the shortest

distance between two points over the surface of the

Earth), the cities closest to Laoang are Calbayog, Samar,

Catbalogan, Samar, Borongan, Eastern Samar, Sorsogon

City, Sorsogon, Tacloban, and Legazpi, Albay. The nearest

municipalities are Pambujan, Northern Samar, Palapag,

Northern Samar, San Roque, Northern Samar, Catubig,

Northern Samar, Las Navas, Northern Samar, and Mapanas,

Northern Samar. Its distance from the national capital

is 490.23 kilometers (304.62 miles).23

Research Design

This study will employ a descriptive-correlational

method.

The researcher will use descriptive method to

analyze the respondents' profiles in terms of age,

gender, educational attainment, occupation, and source of

income. Additionally, assess the respondents' level of

awareness and understanding of online investment schemes,

as well as their likelihood of participating in such

schemes.
22
Loc.cit.
23

Loc.cit.
 22

The correlational method will be use to examine the

relationship between the respondents' profiles and their

level of awareness and understanding of online investment

schemes, their profiles and likelihood of investing in

such schemes, and the relationship between level of

awareness and understanding of online investment schemes

and the likelihood of investing in such schemes.

The Variables

The independent variables of the study will be the

profile of the respondents in terms of age, gender,

educational attainment, occupation, and source of income.

On the other hand, the dependent variables of the study

will be the factors associated with the spread of online

investment schemes in terms of the level of awareness and

understanding of the respondents and the likelihood of

investing of the respondents.

Population and Sampling

This study consists of residents of Laoang, Northern

Samar who are 18 years old and above. Out of 56 barangays

in Laoang, Northern Samar, the researchers will

select 150-200 residents in Laoang within the Poblacion

only. To arrive at this target population, the

 23

researchers will employ a stratified random sampling

method. This method will be employ since the researchers

aim to select the target respondents out of the total

population who will participate and answer the

questionnaires provided for them. The respondents are

expected to be knowledgeable in the research topic which

is about online investment schemes.

Respondent of the Study

The respondents of this study will consist of

selected residents of Laoang, Northern Samar who are 18

years old and above, and it will be chosen from barangays

within the poblacion area. These individuals are

considered suitable for this study as they are more

likely to have access in online platforms.

Research Instrument

In gathering the data for this study, a

questionnaire will be use. The questionnaire is adapted

from the study “An Exploratory Factor Analysis of

Financial Literacy and Awareness of Investment Scams” by

Hazlina Mohd Padil et al., with modifications to fit the

specific context of this research. The instrument is a

structured questionnaire designed to collect data on the

 24

factors associated with the spread of online investment

schemes in Laoang, Northern Samar. It is divided into

three parts: Part I presents the profile of the

respondents which includes age, gender, educational

attainment, occupation, and source of income to profile

respondents. Part II assesses respondents’ awareness and

understanding of online investment schemes using a 5-

point Likert scale. Items focused on knowledge of risks,

indicators of fraud, and understanding of regulations.

Part III measures the likelihood of respondents engaging

in such schemes using the same 5-point Likert scale. It

evaluates behavioral tendencies and influences such as

peer recommendations, celebrity endorsements, and

perceived reliability of the investment. This instrument

aims to correlate awareness levels with investment

behavior to identify key contributing factors to the

spread of these schemes.

Scoring and Interpretation

To interpret the level of awareness and

understanding of online investment schemes of the

respondents, the following scales and interpretation will

be use:
 25

Scale Interpretation

4.20 – 5.00 Very High

3.70 – 4.19 High

2.60 – 3.39 Average

1.80 – 2.59 Low

1.00 – 1.79 Very Low

To interpret the Likelihood of investing in online

investment schemes of the respondents, the following

scales and interpretation will be use:

Scale Interpretation

4.20 – 5.00 Very High

3.70 – 4.19 High

2.60 – 3.39 Average

1.80 – 2.59 Low

1.00 – 1.79 Very Low

Validation of Research Instrument

The questionnaire of this study is adapted from the

study “An Exploratory Factor Analysis of Financial

 26

Literacy and Awareness of Investment Scams” by Hazlina

Mohd Padil et al. Hence, no validation will be made.24

Data Gathering Procedure

Before conducting the study, the researchers asked

permission from the research professor and thesis adviser

through a letter. Once approved, a letter was given to

the chair of the department of criminology to ask

permission for the conduct of the study. Afterward,

another letter will be given to the respondents for the

actual sending of the questionnaire. This is followed

right after the submission of the respondent’s answers.

Then the gathered data will be tabulated, analyzed, and

interpreted using appropriate statistical tool.

Statistical Treatment of the Data

The statistical tool that will be used in this study

are the following:

Frequency Counts and Percentages. These will be used

to determine the profile of the respondents in terms of

24
Hazlina Mohd Padil et al. An Exploratory Factor Analysis of
Financial Literacy and Awareness of Investment Scam, presented at the
International Invention, Innovative & Creative (InIIC) Conference,
Series 2/2020, November 2020. Retreived from
https://www.researchgate.net/publication/345713837_An_Exploratory_Fac
tor_Analysis_of_Financial_Literacy_and_Awareness_of_Investment_Scam
 27

age, gender, highest educational attainment, occupation,

and source of income.

Mean and Standard Deviation. These will be used to

determine the factors associated with the spread of

online investment schemes in terms of level of awareness

and understanding of online investment schemes, and

likelihood of investing in such schemes.

Pearson r correlation. This will be used to find out

the significant relationship between the profile of the

respondents and the level of awareness and understanding

of online investment schemes, find out the significant

relationship between the profile of the respondents and

the likelihood of investing in such schemes, and

determine the relationship between online investment

scheme awareness and the likelihood of investing in such

schemes.
 28

LITERATURE CITED

Ajzen, I. (1991). The Theory of Planned Behavior. Organizational

Behavior and Human Decision Processes, 50(2), 179–211.
Retrieved from https://doi.org/10.1016/0749-5978(91)90020-T

Balogun, O. S., Akangbe, T. A., Fagbamila, O. D., & Aigbovbioisa, F.

O. (2024). Internet users’ perception of the prevalence of
online investment fraud and victimisation in Nigeria. Gusau
Journal of Sociology, 4(2), 169–181. Retrieved from
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 30

Questionnaire on Factors Associated with the Spread of

Online Investment Schemes in Laoang, Northern Samar

Name:__________________________________________

(optional)

Part I. Profile of the respondents

Instructions: Please supply all the requested

information.

Age:_____

Gender:  Male

 Female

 Other (please specify)_________

Highest Educational Attainment:_____________________

Occupation:__________________________

Source of Income:____________________

Part II. Awareness and Understanding of Online Investment

Schemes

Instructions: Please rate the following statements

according to your level of agreement by putting a check

 31

mark () on box or table. Please be guided with the

following scale below.

Rating Scale:

5 – Strongly Agree

4 – Agree

3 – Neither Agree nor Disagree

2 – Disagree

1 – Strongly Disagree

Statement 5 4 3 2 1

1. I am aware
that online
investment
schemes can be
fraudulent.
2. I understand
the risks
associated with
investing in
online schemes.
3. I know how
to identify a
potential
online
investment
scam.
4. I am
cautious when
investing in
online schemes.
5. I believe
online
investment
schemes are a
 32

good way to
make quick
money.
6. I am aware
of the warning
signs of a
Pyramid/Ponzi
scheme.
7. I understand
the importance
of verifying
the legitimacy
of an online
investment
scheme.
8. I know how
to report a
suspicious
online
investment
scheme.
9. I am aware
of the
consequences of
investing in a
fraudulent
online
investment
scheme
10. I believe
that online
investment
schemes are
regulated by
the government.
11. I am aware
that online
investment
schemes can
promise
unusually high
returns to
attract
investors.
12. I
understand that
online
investment
schemes can use
fake
 33

testimonials
and fake
credentials to
deceive
investors.
13. I am aware
that online
investment
schemes can be
used to launder
money.
14. I
understand that
online
investment
schemes can be
used to steal
personal and
financial
information.
15. I believe
that online
investment
schemes are
threat to
financial
stability.

Part III: Likelihood of Investing in Online Investment

Schemes

Instructions: Please rate the following statements

according to your level of agreement by putting a check

mark () on box or table. Please be guided with the

following scale below.

Rating Scale:

5 – Strongly Agree
 34

4 – Agree

3 – Neither Agree nor Disagree

2 – Disagree

1 – Strongly Disagree

Statement 5 4 3 2 1

1. I am likely
to invest in an
online
investment
scheme if it
promises high
returns.
2. I would
invest in an
online
investment
scheme if
recommended by
a friend or
family member.
3. I am willing
to take risks
when investing
in online
schemes.
4. I would
invest in an
online
investment
scheme without
conducting
thorough
research.
5. I believe
online
investment
 35

schemes are a
reliable way to
make money.
6. I am more
likely to
invest in an
online
investment
scheme if it is
endorsed by a
celebrity.
7. I would
invest in an
online
investment
scheme if it
promises a
guaranteed
return.

8. I am less
likely to
invest in an
online
investment
scheme if it
has a low
return.
9. I would
invest in an
online
investment
scheme if it is
recommended by
a financial
advisor.
10. I believe
that online
investment
schemes are a
good way to
diversify my
investments.
11. I am likely
to invest in an
online
investment
scheme if it
has user-
friendly
interface.
 36

12. I would
invest in an
online
investment
scheme if it
offers a free
trial or demo.
13. I believe
that online
investment
schemes are a
convenient way
to invest.
14. I am likely
to invest in an
online
investment
scheme if it
has a good
reputation.
15. I would
invest in an
online
investment
scheme if it
offers a high
return with low
risk.