Social Media and Investment Scams: Examining Social Media Platforms as a Tool for Investment Scams among University Students in Pakistan

Abstract

Investment scams on digital platforms have increased significantly and created heightened vulnerability among young and active users, specifically university students in Pakistan. This study aims to address the concerns related to social media platforms as they are used as financial guidance, as well as promoting misleading and fraudulent schemes. The study focused on two research questions: which social media platforms students perceive as trustworthy for investment-related information, and which they believe are associated with promoting investment scams. The study used a quantitative survey design, and data were collected from different public and private universities in Pakistan. The survey was suitable for study as it allows for a large data collection within a limited timeframe. The simple random sampling technique was used, and it ensured equal participation opportunities for all the students. A total of 288 responses were analysed using basic descriptive statistics to measure the frequencies and percentages. Findings revealed that scams related to promotions are mostly done on Facebook, followed by TikTok and WhatsApp, while students believe YouTube is the most trustworthy for investment guidance, followed by WhatsApp and Instagram. Facebook and Telegram were marked as the least trusted and reliable sources for investment information. Results indicate that there is a clear discrepancy between platform popularity, perceived trustworthiness, and perceived risk, highlighting the complex nature of students' digital financial exposure. Overall, the conclusion of the study is that the Pakistani university students are aware of platform-specific risks, but they encounter fake investment schemes frequently on these platforms in their daily routine.