Is financial literacy a protection tool from online fraud in the digital era?

Eleonora Isaia, Noemi Oggero and Davide Sandretto

Journal of Behavioral and Experimental Finance, 2024, vol. 44, issue C

Abstract: Cybercrime increased dramatically during the Covid-19 pandemic, when people’s online exposure rose significantly. In this paper, we analyze the relation between being a victim of online financial fraud and financial literacy, using representative Italian data collected in 2020. We find that basic financial knowledge is negatively associated with the probability of being defrauded online, while individuals who are overconfident about their level of financial literacy are more likely to fall victim to fraud. Moreover, those who were forced to work remotely because of the pandemic experienced a higher risk of fraud, that was reduced by financial literacy. Our findings suggest that financial literacy may provide protection against online fraud even in a context of high online exposure.

Keywords: Online financial fraud; Financial literacy; Financial literacy overconfidence; Remote working; Covid-19 (search for similar items in EconPapers)
JEL-codes: D18 G41 G53 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:44:y:2024:i:c:s2214635024000923

DOI: 10.1016/j.jbef.2024.100977

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