Community Awareness on

Online Financial Scam in

Puerto Princesa City

Rongo, Arnold III A.

Tortuga, Jerome C.
Valones, Dario H.
Chapter 1
INTRODUCTION
Background of the Study
1. Digital Transformation and Cybercrimes
The digital age has revolutionized global financial transactions, leading to a
shift towards cashless transactions.
Internet platforms have made financial services easily accessible and
convenient for individuals and businesses worldwide.
The transition to digital finance has brought about significant changes, along
with a multitude of complexities.
One major challenge arising from this shift is the rise in cybercrimes, especially
online financial frauds.
Chapter 1
1.1 Adoption of Digital and Electronic Payments

Electronic payment can be defined as making financial transactions between buyer

and seller through online mode without the involvement of physical cash (Hassan et al.,
2021).
Innovations in information technology have led to the evolution of payment methods
into electronic forms. Traditional cash and check transactions have been replaced by
electronic payment options such as online credit payments, digital wallets (e-wallets),
internet banking, and electronic checks.
Chapter 1
1.1 Adoption of Digital and Electronic Payments

According to the Bangko Sentral ng Pilipinas (BSP), there has been significant growth
in digital payments over the past five years.
In 2022, digital payments accounted for 42.1% of total retail payment volume and
40.1% of total value, amounting to 611.7 million transactions and 78 billion USD,
respectively.
Chapter 1
1.1 Adoption of Digital and Electronic Payments
Chapter 1
1.1 Adoption of Digital and Electronic Payments

People are more adapted to use electronic payment as their payment method because
of its convenience, a trend accelerated by the COVID-19 pandemic. The necessity of social
distancing and the closure of physical businesses prompted a significant increase in online
transactions. Even after restrictions were lifted, cashless transactions are here to stay, as
Filipino consumers continue to opt for mobile wallets and card-based payments to
complete their online shopping transactions (Statista, n.d.). In 2022, the Philippines made
one of the highest digital payment transactions in Southeast Asia, with a forecast growth in
the next few years.
Chapter 1
1.2 Online Financial Scam

Online scam refers to a person who responds to an unauthorized request through the Internet by
providing private information, thereby suffering from financial and non-financial losses (Ansar et al., 2021). It
can be defined as those who uses internet services or software to defraud or exploit victims, usually for
financial gain. They are drawn to the increase in money flows as well as inexperienced users, which allows
them to discover a new way to deceive consumers online where money is transacted. Internet users have
become unaware of the transparency of their information as a result of their reliance on the internet.
Chapter 1
1.1 Online Financial Scam

The Philippine National Police – Anti-Cybercrime Group (PNP-ACG) reported over

8,000 complaints of various online scams from January to August 2023, resulting in
victims losing more than P155 million. These scams included online selling, investment,
call, employment, loan, package, accommodation, and love scams. The top reported scams
were online selling scams, investment scams, and ATM fraud or phishing. Perpetrators
commonly used popular social media platforms, payment, messaging, and selling apps and
websites to carry out their illicit activities. Despite the significant number of victims, only
a fraction filed regular cases or underwent inquest proceedings, with the majority still
under investigation or confirmed through other means (PNP-ACG, 2023).
Chapter 1
Chapter 1

Statement of the Problem

1. What is the demographic profile of the respondents in terms of:

a. Age;
b. Sex;
c. Civil status;
d. Occupation and
e. Educational attainment?
Chapter 1

Statement of the Problem

2. What is the level of awareness of the respondents on online financial scams

among residents of Puerto Princesa City?

3. What are the types or modes of online financial scams encountered by

respondents in Puerto Princesa City ?

4. What are the strategies employed to mitigate online financial scams in Puerto
Princesa City?
Chapter 1

Significance of the Study

The rise of online financial scams in the Philippines highlights the need to
understand how aware and prepared the community is in dealing with these cyber
threats. This study aims to investigate residents’ awareness in Puerto Princesa City
regarding online financial scams by examining their demographic profiles and
knowledge of these scams. By shedding light on factors that influence susceptibility
to such scams, the study can help develop effective strategies to mitigate
cybercrime risks and protect residents’ financial well-being.
Chapter 1

Significance of the Study

The study’s goal is to provide valuable insights into residents’ awareness of

online financial scams in Puerto Princesa City. By analyzing the data that will be
gathered, the study aims to identify trends that can inform targeted interventions
and educational campaigns to enhance cybersecurity awareness. Additionally,
documenting the types of online financial scams encountered by residents will offer
a comprehensive overview of cyber threats in the digital age.
Chapter 1

Significance of the Study

This study can provide benefits to it’s beneficiaries including the residents,
local government authorities, law enforcement agencies, financial institutions, and
cybersecurity professionals. By understanding residents’ awareness and behaviors
regarding online financial scams, authorities can make initiatives and policies to
better protect the community. Financial institutions and cybersecurity
professionals can use the findings to design educational materials and campaigns
aimed at empowering residents to detect and prevent online financial scams,
ultimately contributing to a safer digital environment in Puerto Princesa City.
Chapter 1
Scope and Delimitation
This study focuses on examining various types of
online financial scams commonly encountered in
Puerto Princesa City, including phishing, identity theft, vishing, investment
scams, frauds on online purchases and text and email scam and etc. It assesses
residents’ awareness levels regarding these scams, exploring their knowledge,
perceptions, and experiences related to cyber threats. Additionally, the research
evaluates existing mitigation strategies and educational initiatives aimed at
combating online financial scams in Puerto Princesa City, considering their
effectiveness and reach within the community. While the study primarily focuses
on Puerto Princesa City, it acknowledges that its findings may not be fully
Chapter 3
METHODOLOGY
Research Locale
The study on community awareness on online financial scams will
be conducted in Puerto Princesa City, Philippines. Respondents will be
invited to participate and answer survey questions in the comfort of
their homes or any place they choose. Puerto Princesa City was chosen
as the implementation location due to its significance in providing
crucial insights into residents’ awareness of online financial scams
within the city.
Chapter 3
Research Locale
Chapter 3
Research Method
In this study, the survey method will be employed to gather data
on community awareness of online financial scams in Puerto Princesa
City. The specific instrument for data collection will be a survey
questionnaire. This questionnaire will be distributed to respondents
who will answer it in their homes or any comfortable place they choose,
ensuring convenience and privacy for participants while providing
valuable insights into their awareness levels regarding online financial
scams.
Chapter 3
Respondents
The respondents of the study were selected from digital users
such as: online merchants, investors, financial institutions, online
payment users in Puerto Princesa City who have knowledge of online
platforms and are willing to answer survey questions. The researchers
implemented a survey questionnaire via random sampling among
residents of Puerto Princesa City.
Chapter 3
Population and Sample

To ensure the study’s findings are trustworthy, a solid sample was

necessary. The researchers used simple random sampling procedures
from selected barangay of Puerto Princesa to determine the sample size
of the population of digital users in Puerto Princesa City.
Chapter 3
Research Instrument
This study will use a self-formulated survey questionnaire derived from
different literature related to community awareness of online financial scams in
Puerto Princesa City. It will be administered to selected digital users such as online
merchants, investors, financial institutions, and online payment users in Puerto
Princesa City who have knowledge of online platforms and are willing to answer
survey questions. The survey questionnaire will consist of two (2) parts.
>> Part I will focus on the level of community awareness of online financial scams
in Puerto Princesa City.
>> Part II will deal with the seminars attended by the respondents related to
community awareness of online financial scams.
Chapter 3
Data Collection Procedure
The researchers will follow systematic and orderly procedures in gathering
data to produce a good result based on the survey to attain the research objectives.
Before conducting this study, the researchers will ask permission from the Dean of
the College of Criminal Justice Education through a communication letter duly
noted by the research adviser. In addition, another request letter will be sent to the
Puerto Princesa City Mayor’s Office to seek permission to conduct the study with
the identified respondents. Upon approval, the researchers will administer the
questionnaires to the selected households at their available time. During the
administration of questionnaires, the researchers will explain the instructions and
purpose of the study and how the respondents can help by answering the indicator
questions.
Chapter 3
Data Collection Procedure
Likewise, the researchers will ask about the voluntary involvement of the
respondents and will not compel them to answer the questionnaire or prevent
them from withdrawing their responses if they wish to do so. Further, the identity
of the participants in the study will be kept confidential. Lastly, the researchers will
inform the respondents that the results of the study will be disseminated to the
college dean’s after finalizing the study.
Chapter 3
Methods of Data Analysis
All the data that will be gathered after the conduct of this study will be
subjected to statistical treatment. Descriptive statistics, frequency analysis,
percentage and survey analysis.

Survey Analysis will be used and utilize descriptive statistics to determine

the level of awareness of the respondents regarding online financial scams in
Puerto Princesa City.
Frequency analysis and percentages were used to sum up the level of
awareness and the existing coping mechanism regarding online financial scams.
The Likert Scale was employed to evaluate the level of community awareness
regarding online financial scams among residents and digital users in Puerto
Princesa City.
Chapter 3
Methods of Data Analysis
The Likert Scale, consisting of statements and items related to online financial
scams, that will be allowing the respondents to indicate their level of awareness on
a scale ranging from “Not Aware” to “Very Aware.” This facilitated the researchers
in understanding the extent of awareness and perception within the community
towards online financial scams.

Responses from the residents and digital users in Puerto Princesa City will be
collected and analyzed to determine the overall level of community awareness
regarding online financial scams. The Likert Scale data provided valuable insights
into the perceptions, attitudes, and experiences of the community, informing
strategies for enhancing digital security and mitigating the risks of online financial
scams.
Chapter 3
Methods of Data Analysis
The following four-point Likert Scale with a corresponding set of
descriptive interpretations was used as follows:
THANK
YOU