behavioural Biases, Financial Motives, and Literacy in Crypto-Pyramid Schemes Susceptibility: Evidence from a Systematic Review

Abstract

This study employed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 guidelines to examine the influence of behavioural biases, financial motives, and financial literacy on participation in crypto-based pyramid schemes. The review included peer-reviewed journal articles, book chapters, and conference papers published from 2023 to 2025. A systematic literature search was conducted in Scopus, Web of Science, and Google Scholar between 20th February 2025 and 28 February 2025 using combinations of the terms behavioural biases, financial motives, and financial literacy with participation in crypto-based pyramid schemes. Retrieved records were imported into Zotero for duplicate removal, followed by title, abstract, and full-text screening against predefined inclusion and exclusion criteria. A total of 25 studies met the eligibility criteria and were synthesised thematically to identify recurring patterns, gaps, and outcomes. The review found that behavioural biases, including overconfidence, herding, framing effects, fear of missing out and greed, strongly increase susceptibility to crypto-based pyramid schemes. Financial motives, particularly the pursuit of high returns, financial hardship, and personal enrichment, further drive participation, while low financial literacy exacerbates vulnerability. The interaction among these factors further strengthens their influence on participation. The study recommends that financial literacy programmes incorporate behavioural training to help individuals recognise and mitigate cognitive biases. Future research should adopt longitudinal and experimental designs to establish causal relationships.