THE ROLE OF WAQF INSTITUTIONS IN MITIGATING THE IMPACT OF ILLEGAL INVESTMENT SCAMS: AN ISLAMIC SOCIAL FINANCE PERSPECTIVE
DOI:
https://doi.org/10.35631/AIJBES.829107Keywords:
Consumer Protection, Financial Literacy, Hifz al-Mal, Illegal Investment Scams, Islamic Social Finance, Waqf\Abstract
The occurrence of an illegal investment scam has grown and continues to grow. Further, it is causing financial loss and psychological harm to many people. Though regulatory authorities and financial institutions are constantly making efforts to educate people to avoid falling prey to fraudulent investment schemes, there are still those who fall for these schemes owing to their lack of financial literacy, over trust, and lust for quick money. According to Islamic social finance, this paper delves into the role of waqf institutions in alleviating illegal investment scam issues.Using a qualitative library-based approach, this study examines relevant literature on waqf, financial literacy, consumer protection, and investment fraud. The findings suggest that waqf institutions can contribute significantly through financial education programs, public awareness campaigns, victim support initiatives, and collaborative governance frameworks. Furthermore, the study highlights the relevance of waqf in achieving the Maqasid al-Shariah objective of Hifz al-Mal (protection of wealth). The paper proposes a conceptual framework that positions waqf as a sustainable mechanism for strengthening financial resilience and reducing vulnerability to illegal investment scams. The study contributes to the growing literature on Islamic social finance by expanding the role of waqf beyond traditional charitable activities toward contemporary socioeconomic challenges.
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