Solutions to Protect Consumers from Fraud in Digital Finance

Financial fraud and scams have become one of the most pressing threats to the financial sector and consumers in digital finance. Beyond direct monetary losses, fraud erodes consumer trust and risks reversing gains in financial inclusion. Anti-fraud efforts from authorities and providers struggle to keep pace with the complexity of modern fraud schemes. 

This working paper presents a curated set of solutions for fraud (many of which are AI-powered), with more than 50 examples that have shown varying levels of success in protecting consumers from fraud in digital finance, across education, prevention, detection and disruption, and response and recovery. 

Building on CGAP's work on responsible digital finance ecosystems, this paper provides considerations for global organizations, country-level authorities, and other key stakeholders in the ecosystem to seize the opportunities while addressing trade-offs. It calls for increased collaboration across authorities, digital financial service providers, and other stakeholders. It also calls for increased cross-border collaboration and investment in emerging market and developing economy authorities' capabilities.