FinTech Scams, Fraud, and MFS Continuance Usage: An Empirical Study on Generation Z in Bangladesh

Abstract

Mobile Financial Services (MFS) have emerged as a critical enabler for the digital economy in Bangladesh with a surge in financial technology, especially for Generation Z consumers. This uptake of new technology comes with a shifting threat landscape of advanced cybercrimes, such as AI-powered social engineering, OTP hijacking, and synthetic identity fraud. Although young users have become more digitally literate, knowledge of their vulnerabilities after adoption, as well as their security-related responses, remains very limited and under-researched in emerging MFS markets. The current study explores the structural mechanisms between Agent Trust and FinTech Fraud Awareness with Customer Satisfaction and how both of these variables relate to the Continuance Intention of Generation Z in Bangladesh. This empirical study is based on the quantitative survey research design, incorporating the DeLone & McLean Information Systems Success Model, Protection Motivation Theory (PMT), and the Extended Expectation-Confirmation Model (E-ECM-IT). The data collected from the active Generation Z MFS users (N = 144) were processed using internal scale reliability tests, the bivariate Pearson correlation, the sequential ordinary least squares (OLS) linear regression model. Both the Agent Trust (β = .444, p < .01) and the FinTech Fraud Awareness (β= .401, p < .01) are significantly positively associated with Customer Satisfaction and can explain the variance of .613 (R2 = .613). Moreover, Customer Satisfaction is a significant direct determinant of Continuance Usage Intention (β = .646, p < .01) and explains 81.8% of the variance in platform retention (R2 = .818). The linear regression results showed that both Agent Trust (H1) and FinTech Fraud Awareness (H2) have significant positive effects on Customer Satisfaction, with Agent Trust having a larger effect. In addition, all direct structural links were confirmed, such as that of Customer Satisfaction to Continuance Usage Intention(H3), as indicated. Moreover, Customer Satisfaction significantly influenced the continuance intention, which confirmed all direct structural links. The model explains a significant amount of variation in platform retention of Bangladeshi MFS users.