Investment scam vulnerability among university students: the role of personality traits and risk tolerance

This study demonstrates that personality traits affect investment scam vulnerability, either directly or indirectly, through risk tolerance. This study uses the Big Five personality traits, specifically openness to experience, conscientiousness, extraversion, agreeableness,
and neuroticism. This study collected data by randomly distributing surveys
to students from A-accredited universities in Java and Bali, Indonesia, areas known for
their economic growth. The study analysed 421 respondents aged 18�24 years old at
undergraduate and graduate levels using the partial least squares method. Our findings
reveal a negative correlation between the conscientiousness trait and scam vulnerability.
The ability of conscientiousness-type respondents to obtain quality and
relevant information prevents them from making impulsive investments. This study
also finds that students with high openness to experience, extraversion, and neuroticism
traits increase their vulnerability to scams through risk tolerance. These types of
personality traits cause the individual to tolerate more risky investments, thereby
increasing their susceptibility to investment fraud. There is still limited research that connects personality traits, risk tolerance, and scam vulnerability. In addition, this study is able to expand the boundaries of the Big Five personality theory.