Young Malaysians are increasingly drawn to wealth-building opportunities that align with their values. Concepts such as Environmental, Social, and Governance (ESG) investing are especially appealing to a generation concerned about climate change, social justice, and ethical business practices.
Yet this noble aspiration comes with hidden risks. Fraudsters are quick to exploit these ideals, repackaging fraudulent schemes under the banner of “green” or “sustainable finance” to lure unsuspecting investors.
Recent reports highlight a worrying escalation of online fraud in Malaysia. Financial losses have risen sharply, and the number of reported cases continues to climb year after year. Authorities have noted a flood of scam-related complaints and calls, indicating that fraud has become a widespread issue rather than an occasional occurrence.
This trend underscores that online scams are not only draining victims financially but also posing a broader social and economic threat to the nation.
For young people, the danger lies in two critical gaps: low levels of sustainable accounting literacy and limited awareness of fraud risks within ESG investing. While many can appreciate the social or environmental dimensions of companies, few are equipped to assess financial statements, disclosures, and compliance signals that separate legitimate opportunities from deceptive ones.
Without this knowledge, the enthusiasm for ethical investing risks becoming a gateway to financial vulnerability.
Addressing this challenge requires collective action. Universities should embed sustainable financial literacy into their curricula, while regulators must tighten disclosure standards for ESG-related products.
Financial institutions, too, should play a role by leading awareness campaigns that highlight the tricks fraudsters use. Collaborative efforts between educators, policymakers, and industry experts can build a framework that empowers young investors to pursue ethical investments without falling prey to scams.
Protecting young investors goes beyond safeguarding individual savings—it is about preserving trust in sustainable finance itself. If scams continue to erode confidence, the credibility of ESG as a tool for positive change could be compromised.
Equipping youth with financial knowledge and critical judgment is not only urgent, but essential for Malaysia to nurture a generation that is both financially resilient and socially responsible.
This is the author's personal view and does not necessarily represent the views or official position of RTM.
Dr. Nur Diyana Mustapha, CPA
Senior Lecturer
Faculty of Business and Communications
INTI International University
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