Global Statement
StoPping Online Scams

Stopping Online Scams

Global Statement - Stopping Online Scams
2As organisations that represent the interests of consumers

Only 7% of victims recover their lost funds. Consumers also

across the globe, working through Consumers International,

experience emotional and psychological harm globally due

we call on governments to require technology platforms toto scams like emotional turmoil, shame, loss of confidence

take effective action to protect consumers from scams. 

and other forms of distress. Almost 3 out of 5 (59%) of3

scam victims report a substantial emotional impact,
4Online scams are on the rise, but global technology

signifying the widespread emotional repercussions.

companies are failing to detect and prevent scams fromreaching consumers through their platforms. Scammers
are exploiting lax technology platform protections to easily
and cheaply target consumers through social mediaservices, online ads, marketplaces and over-the-topmessaging services. These scams are often sophisticated,highly targeted and difficult for consumers to detect.

The rise in scams is a global problem, causing consumersimmense financial, emotional and psychological harm.
According to the Global State of Scams - 2023, the financial
loss due to scams amounts to a staggering $1.026 trillion,
1equivalent to 1.05% of the global GDP.  

Hong Kong victims lost an estimatedCanadian victims lost aroundUK victims reported total losses of(or approximately 394 million USD)

(or approximately 2.1 billion

CA$531 million
9to scams in 2022.

£1.7 billion

HK$779 million
to social media scams (orapproximately 100 million USD) andUSD) to scams in 2022.6

HK$74 million(or approximately 9 million USD) due
8to e-shopping fraud in 2022.

In Australia, victims reported a loss of

AU$3.1 billion(or approximately 2 billion USD) to5scams in 2022.

New Zealand victims reported around“According to the Global State of Scams - 2023, thefinancial loss due to scams amounts to a staggering$1.026 trillion

equivalent to 1.05%
of the global GDP.”

NZ$200 million
or approximately 123 million USD) inscam losses in 2022.7

7

Stopping Online Scams

We are calling on governments to ensure adequate protection against the growing risks ofscams on technology platforms. Governments should require platforms to take effective
action in the prevention, disruption and detection of scams, which should be continuallyimproved. There should be significant consequences if technology platforms fail to meet thefollowing essential requirements:

Preventative Measures

Disruption & Detection
Strategies

Appropriate response andsupport

Advanced Monitoring Systems:

Clear Reporting Channels:

Employ new technologies to monitor andEstablish and promote clear reporting

flag suspicious activities, patterns, andchannels for users to report scams,

content associated with scams

ensuring a timely and effective response

Ad Policies and Screening:

Prompt Content Removal:

Victim Support Services:

Enforce strict ad policies, thoroughly

Swiftly remove or suspend fraudulent

Provide accessible and comprehensive

screen advertisements and productaccounts, ads, or content upon detection,

support services for victims, including

listings, and block potentially fraudulent

disrupting ongoing scam operations.

notification, guidance, resources forEnhanced Verification Procedures:
Implement stringent and globallyconsistent verification processes tovalidate the authenticity of apps,advertising accounts and ads.

content.

recovery, and legal assistance.

Collaboration with other Services

Education and Awareness:

Transparency and Accountability:

and Authorities:

Provide clear guidelines and routes on

Maintain transparent protocols for

There are opportunities to prevent scams

how to report scams, what to do if aaddressing reported scams and beif governments enable scam data andconsumer has been scammed, and how

accountable for the resolution process.

 

trend information sharing between

to identify potential scams. The data thattechnology platforms, governments andis collected from user reporting should beother businesses in the scam ecosystemused to understand fraud practices and(such as payment providers, internet

continuously improve prevention

infrastructure providers and telecoms

processes.
 

companies). 

There are also opportunities to partnerwith law enforcement agencies to identify
and shut down global scam networks
operating on a platform.

Stopping Online Scams

Signatories
This statement is supported by the following organisations:(International organisation)(Australia)(New Zealand)(The European Consumer
Organisation)[Zimbabwe)(Japan)(India)(Australia)(South KOrea)(European organisation)(Hong Kong)(Fiji)(Belgium)(Italy)(UK)(Australia)(Myanmar)(India)(Tec-Check Digital(Norwegian Consumer

Consumer Organisation,Council, Norway)

Mexico)(Consumers Japan,(Yemen)

Japan)(Danish Consumer Council,(The Portuguese

Denmark)

Association for Consumer
Protection, Portugal)(Organisation of Consumers
and Users, Spain)(Malaysia)(Canada)(Estonia)

Stopping Online Scams

Appendix

Psychological Tactics

Revictimisation

Scammers exploit victims' emotional vulnerabilities,

A pattern of scammers revictimising individuals isengaging them when they are stressed, tired, orevident globally, with a rate of 1.5 revictimisations

distracted, and manipulate psychological biases toper person across most countries, notably higher in

10

11

reduce victims' ability to question the scam.

some, like Kenya and Nigeria.

Underreporting Challenges

Emotional Toll

59% of respondents refrain from reporting scams

59% of scam victims report a substantial emotional

due to complexity and uncertainty, leading toimpact, signifying the widespread emotional

underreporting and a challenge in effective scam

repercussions that transcend geographical12resolution.

13boundaries.

The laws for digital platforms should be supported by appropriate rules for other parts of the scams ecosystem. Consumer organisations support

timely reimbursement from banks and relevant payment institutions when their customers are victims of payment fraud.

Global Anti-Scam Alliance, 2023, The Global State of Scams Report, accessed on 7November 2023, https://www.gasa.org/product-page/global-state-of-scams-report-2023 "Global State of Scams Report.

Which?, December 2022, The Psychology of Scams Report - Understanding why consumers fall for APP scams.

https://www.which.co.uk/policy-and-insight/article/the-psychology-of-scams-aizJj8F0E4rY

Global State of Scams Report.

Australian Competition and Consumer Commission, April 2023, Targeting scams Report of the ACCC on scams activity 2022, accessed on 6 November 2023, https://www.accc.gov.au/system/files/
Targeting%20scams%202022.pdf

The Psychology of Scams Report.

Ministry of Business, Innovation and Employment, November 2023, 198 million dollars lost to scams in the last year, accessed on 20 November 2023, https://www.mbie.govt.nz/about/news/198-million-dollars-lost-toscams-in-the-last-year/

Cyber Defender, 2023, Technology Crime Figures, accessed on 10 November 2023, https://cyberdefender.hk/en-us/statistics/

Royal Canadian Mounted Police, July 2023, Canadian Anti-Fraud Centre’s fraud reporting datasets mark first RCMP addition to Open Government Portal, accessed on 4 December 2023 https://www.rcmp-grc.gc.ca/en/
news/2023/canadian-fraud-centres-fraud-reporting-datasets-mark- first-rcmp-addition-open-government.

The Psychology of Scams Report.

Global State of Scams Report.

Global State of Scams Report.

Global State of Scams Report.