With the rapid development and adoption of digital financial products, services and distribution channels, many countries are experiencing a significant increase in the frequency and complexity of financial scams and frauds targeting consumers. This report aims to understand the drivers of financial scams and frauds and identify effective approaches to prevent and detect them by analysing the perspectives of financial policymakers, regulators and supervisors globally. The report also puts forward a typology of the different financial scams and frauds targeting consumers to help public authorities better classify and leverage reported data.
Protecting Consumers from Financial Scams and Frauds
Abstract
Executive summary
As the financial landscape evolves through the rapid development and adoption of digital financial products, services and distribution channels, jurisdictions around the globe have witnessed a significant increase in the frequency and complexity of financial scams and frauds targeting consumers. As highlighted in the OECD’s Consumer Finance Risk Monitor 2026, financial scams and frauds are the top risk facing financial consumers around the world.
In many jurisdictions, the rise in the number of consumers falling victim to financial scams and frauds has coincided with the increasing use of mobile and digital financial services. As the volume of transactions on online financial services platforms grows, these platforms have become an increasingly attractive target for fraudsters. Beyond the significant financial and emotional harm to consumers who fall victim, financial scams and frauds also threaten to erode levels of public trust and confidence in the financial system and undermine gains made in expanding access to financial services.
Scamming methods and techniques are becoming increasingly complex, leveraging artificial intelligence, deepfakes and the ever-changing digital landscape to create new and sophisticated schemes. In rapidly evolving digital environments, consumers may fail to identify scams or fraudulent schemes, understand and properly use security features. Furthermore, the widespread adoption of mobile devices, social media platforms and/or digital finance by consumers and financial services providers increases the risk of consumers being exposed to fraudulent content. Consumers may also be unaware that social media and online platforms do not always vet financial advice, and consumers may also provide personal data on these platforms, making them targets for fraudsters and scammers.
Inadequate systems to detect or prevent unauthorised transactions or payments are also driving the increase in the incidence and severity of financial scams and frauds. The aim of these procedures is to correctly identify attempts to use security credentials that were lost, stolen or misappropriated and to ensure that the user is the legitimate owner of the account. However, detection methods currently used by financial services providers may not always be robust, and integrating new technology (e.g. AI, machine learning) to enhance fraud detection can be costly, particularly for smaller institutions. While financial scams and frauds often originate outside of a financial services provider, the provider’s conduct remains a critical component in shaping the extent of consumer harm.
To take effective action, policymakers and public authorities should be aware of the different types of financial scams and frauds targeting financial consumers. To facilitate this awareness, it is important for public authorities to have data on the incidence of financial scams and frauds, as well as the amounts of financial losses. This data allows public authorities to engage in more systematic classification and monitoring, to identify patterns or high-risk areas, to track trends and to allocate resources effectively. This evidence base can inform risk-based approaches and can help public authorities target their response and anticipate developments.
While there is no single policy or regulation that can effectively protect all financial consumers from financial scams and frauds, the following six policy recommendations comprise key elements.
Establish and enforce robust financial consumer protection frameworks.
Develop fair and accessible liability and redress mechanisms.
Establish and promote a dedicated reporting channel.
Use a typology to collect and classify data on financial scams and frauds.
Raise levels of digital financial literacy and promote consumer awareness about financial scams and frauds.
Collaborate with stakeholders across the anti-fraud ecosystem.
