Global coalition of consumer advocates call for an end to online scams
At Global Congress 2023, Consumers International and Members launched a critical call to action, our Global Statement to Stop Online Scams.
We are calling on governments to ensure adequate protection against the growing risk of scams on technology platforms. Governments must require platforms to take effective action in preventing, detecting and disrupting, and responding to scams.
This co-ordinated global statement comes at a critical time. Online scams are on the rise, but global technology companies are failing to detect and prevent scams on their platforms. Scammers are exploiting weak platform protections to target consumers through social media, online ads, marketplaces and messaging. These scams are often sophisticated, highly targeted and difficult for consumers to detect.
A global problem
Online scams are one of the most visible manifestations of digital consumer harms, causing consumers financial, emotional, and psychological harm. According to the Global State of Scams report (2023), the financial loss due to scams amounts to a staggering $1.026 trillion, equivalent to 1.05% of global GDP. Less than 1 in 10 victims worldwide successfully recover the money they lose to scams, and consumers in low- and middle-income countries are most vulnerable.
The emotional and psychological harm from scams can be devastating. Those who fall victim report emotional turmoil, shame, and a loss of confidence.
Importantly, there is significant room for improvement in how governments protect consumers from scams. 41% of countries don't have consumer protection laws which cover the online marketplace, a huge oversight as reliance on digital networks and technologies accelerates.
Together, we must take action to prevent, disrupt, and detect scams and ensure consumers are safe online.
Our Joint Call to Action
We are calling on governments to ensure consumers have adequate protection against the growing risk of scams on technology platforms.
There should be significant consequences if technology platforms fail to meet the following essential requirements:
To prevent scams from taking place:
- Enhanced verification procedures
- Strict ad policies and screening
- Collaboration with other services and authorities
To detect and disrupt scams when they're happening:
- Advanced monitoring systems
- Prompt content removal
- Education and awareness
To swiftly respond to scams and support consumers when they're affected:
- Clear reporting channels
- Victim support services
- Transparency and accountability
Join us
For any questions, please contact Hollie Hamblett; impact@consint.org.