MONEY INVESTMENT SCAMS: FALLING VICTIM TO EASY-MONEY TRAPS AMID THE PANDEMIC

ABSTRACT

This qualitative study employed a narrative inquiry methodology, utilizing a phenomenological approach anchored in Constructivism, to explore the lived experiences of ten investors in Tapaz, Capiz, who were victimized by large-scale money investment scams (primarily the Don Chiyuto scheme). The research was guided by the Victim Precipitation Theory, focusing specifically on the conditions and actions that contributed to the participants’ financial vulnerability. Findings revealed that participation was primarily facilitated by trusted social networks—including friends, relatives, colleagues, and social media—and driven by strong motivational factors: the promise of high, rapid returns, the aspiration for improved socioeconomic status, and the pressure of community investment trends. Fraud realization occurred upon the failure of scheduled payouts, the disappearance of upline contacts, and public media exposure of the scams. The immediate adverse effects were profound, manifesting as severe psychological distress (including depression, stress, anxiety, and mental trauma) and significant family conflict. Demonstrating resilience, participants initiated coping mechanisms that included securing new loans to restart livelihoods, seeking professional therapeutic support, finding new employment, and consciously adopting a forward-looking perspective. The results conclusively affirm that a combination of underlying economic vulnerability and the pursuit of social validation are critical drivers in susceptibility to investment fraud.

Keywords: Victim Precipitation Theory, Investment Scams, Financial Fraud, Ponzi Scheme, Economic Vulnerability, Psychological Trauma, COVID-19, Pandemic