Hanna Tereshchenko
https://orcid.org/0000-0002-9458-2843
FINANCIAL FRAUD RISKS AND HUMAN CAPITAL DEVELOPMENT: THE ROLE OF FINANCIAL LITERACY IN VOLUNTARY PENSION PROVISION
Full text (pdf)
Language: English
Abstract. This article examines the interrelationship between human capital development, voluntary pension provision, financial literacy, and financial fraud risks. It argues that voluntary pension funds perform not only a social function by providing income after retirement but also serve as an important instrument for mobilising investment resources and strengthening the financial resilience of the population. The study demonstrates that the effectiveness of the voluntary pension system largely depends on citizens’ levels of financial, investment, and digital literacy, as well as on public trust in financial institutions. The research methodology is based on an interdisciplinary approach that integrates human capital theory, the concept of financial literacy, and contemporary studies in the field of pension provision. The study employs systems analysis, comparative analysis, structural and logical analysis, and the synthesis of international experience, drawing on the findings of the OECD/INFE 2023 International Survey of Adult Financial Literacy. The article analyses the most prominent international cases of financial fraud involving pension savings and examines their impact on public trust in financial institutions. The synthesis of empirical evidence confirms a statistically significant relationship between financial literacy and indicators of financial well-being and financial resilience. Based on these findings, the study proposes practical measures to enhance financial, investment, and digital literacy as an integral component of public policy aimed at fostering human capital development, strengthening citizens’ financial security, and improving the effectiveness of the voluntary pension system.
Keywords: human capital development, financial fraud, voluntary pension provision, financial literacy, investment literacy, digital literacy.
https://doi.org/10.32987/2617-8532-2026-3-36-49
Keywords: human capital development, financial fraud, voluntary pension provision, financial literacy, investment literacy, digital literacy.
https://doi.org/10.32987/2617-8532-2026-3-36-49
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2. Becker, G. S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy, 70(5), 9-49. Retrieved from https://www.jstor.org/stable/1829103.
3. Sweetland, S. R. (1996). Human Capital Theory: Foundations of a Field of Inquiry. Review of Educational Research, 66(3), 341-359. Retrieved from https://www.jstor.org/stable/1170527.
4. Ragnedda, M. (2018). Conceptualizing Digital Capital. Telematics and Informatics, 35(8), 2366-2375. DOI: https://doi.org/10.1016/j.tele.2018.10.006.
5. Gómez, D. C. (2021). The third digital divide and Bourdieu: Bidirectional conversion of economic, cultural, and social capital to (and from) digital capital among young people in Madrid. New Media & Society, 23(9), 2534-2553. DOI: https://doi.org/10.1177/1461444820933252.
6. Xue, Q., Wang, H., & Bai, C. (2023). Local green finance policies and corporate ESG performance. International Review of Finance, 23(4), 721-749. https://doi.org/10.1111/irfi.12417
7. Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443-456. DOI: https://doi.org/10.1037/a0022147.
8. Blake, D. (2006). Pension Finance. Journal of Pension Economics and Finance, 9(1), 146-148. DOI: https://doi.org/10.1017/S147474720999028X.
9. Barr, N., & Diamond, P. (2008). Reforming Pensions: Principles and Policy Choices. Oxford University Press. Retrieved from https://www.researchgate.net/publication/227466905_Reforming_Pensions_Principles_and_Policy_Choices.
10. Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44. DOI: https://doi.org/10.1257/jel.52.1.5.
11. Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of Pension Economics and Finance, 10(4), 497-508. Retrieved from https://www.cambridge.org/core/journals/journal-of-pension-economics-and-finance/article/abs/financial-literacy-around-the-world-an-overview/0488F901318E0FBC4C92DC6E964AB89C.
12. Atkinson, A., & Messy, F. (2012). Measuring Financial Literacy. OECD Working Papers. DOI: https://doi.org/10.1787/5k9csfs90fr4-en.
13. Kaiser, T., & Menkhoff, L. (2020). Financial education in schools: A meta-analysis of experimental studies. Economics of Education Review, 78, 101930. DOI: https://doi.org/10.1016/j.econedurev.2019.101930.
14. Kaiser, T., Lusardi, A., Menkhoff, L., & Urban, C. (2022). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics, 145(2), 255-272. DOI: https://doi.org/10.1016/j.jfineco.2021.09.022.
15. Fernandes, D., Lynch, J., & Netemeyer, R. (2014). Financial Literacy, Financial Education, and Downstream Financial Behaviors. Management Science, 60(8), 1861-1883. DOI: https://doi.org/10.1287/mnsc.2013.1849.
16. Xiao, J. J., & Porto, N. (2017). Financial education and financial satisfaction: Financial literacy, behavior, and capability as mediators. International Journal of Bank Marketing, 35(5), 805-817. DOI: https://doi.org/10.1108/IJBM-01-2016-0009.
17. Levi, M., & Burrows, J. (2008). Measuring the Impact of Fraud in the UK: A Conceptual and Empirical Journey. The British Journal of Criminology, 48(3), 293-318. DOI: https://doi.org/10.1093/bjc/azn001.
18. Spalek, B. (1999). Exploring the Impact of Financial Crime: A Study Looking into the Effects of the Maxwell Scandal upon the Maxwell Pensioners. International Review of Victimology, 6(3), 213-230. DOI: https://doi.org/10.1177/026975809900600304.
19. Boddy, C. R. (2024). Insights into the Bernie Madoff financial market scandal which identify new opportunities for business market researchers. International Journal of Market Research, 66(1), 149-167. DOI: https://doi.org/10.1177/14707853231173260.
20. Hagen, J., & Malisa, A. (2022). Financial fraud and individual investment behavior. Journal of Economic Behavior & Organization, 203, 593-626. DOI: https://doi.org/10.1016/j.jebo.2022.09.015.
21. Cronqvist, H., Thaler, R. H., & Yu, F. (2018). When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan. AEA Papers and Proceedings, 108, 153-158. DOI: https://doi.org/10.1257/pandp.20181096.
22. Malisa, A. (2022). Pensions, retirement behaviour and financial fraud victimisation (PhD dissertation, Jönköping University, Jönköping International Business School). Retrieved from https://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-56637.
23. Emanuelsson, I. (2020). (Un)Deliberate Choices of Dubious Funds in the Swedish Pension System (Master’s thesis, Jönköping University, Jönköping International Business School). Retrieved from https://www.diva-portal.org/smash/get/diva2:1433010/FULLTEXT01.pdf.
24. Malisa, A., Hagen, J., & Nystedt, P. (2025). Cognitive ability and financial fraud victimization. The European Journal of Finance, 31(18), 2352–2377. DOI: https://doi.org/10.1080/1351847X.2025.2585956.
Received: [15.05.2026]
Reviewed: [30.06.2026]
Accepted: [14.07.2026]
Published: [31.08.2026]
