The Impact of Digital Financial Literacy on Cybercrime Victimization: Evidence from the Digital Banking Customers in Commercial Banks of Sri Lanka

Abstract

The rapid digital transformation of the banking sector has expanded financial inclusion and efficiency but also exposed consumers to rising risks of cybercrime. In Sri Lanka, digital banking platforms such as Sampath Vishwa, PeoPay, and mobile wallets are widely adopted, yet cyberattacks including phishing and unauthorized transfers remain prevalent. Against this backdrop, this study investigates the impact of Digital Financial Literacy (DFL) on cybercrime victimization among digital banking customers in Sri Lankan commercial banks. Guided by the Theory of Planned Behavior (TPB) and Routine Activity Theory (RAT), the research adopts a positivist philosophy and a deductive approach, employing a cross-sectional survey design. Data were collected from 381 digital banking users across provinces using a stratified random sample and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that user attitudes, digital financial knowledge, and subjective norms significantly reduce the likelihood of cybercrime victimization, while perceived behavioral control and awareness showed no direct effect. Among control variables, age demonstrated a significant correlation with victimization, whereas gender and education did not. The study concludes that DFL is a multidimensional construct that functions both as a behavioral enabler and a guardianship mechanism, shaping safer online financial practices. The results highlight the urgent need for banks and policymakers to design structured literacy and awareness programs that strengthen consumer knowledge and attitudes while leveraging social influence to promote secure digital practices. By demonstrating the preventive role of DFL, the study contributes to theoretical discourse at the intersection of finance, behavior, and criminology, while offering practical insights to enhance cybersecurity resilience in the Sri Lankan banking sector.