Protecting Consumers from Financial Scams and Frauds
Executive Summary
The OECD’s June 2026 launch of Protecting Consumers from Financial Scams and Frauds brought together senior financial regulators from Canada, Australia, India, Japan, Italy, Ireland and the United Kingdom. Despite different legal systems and financial markets, the panel reached a remarkable consensus: consumer fraud has evolved into a global, technology driven threat that cannot be solved by financial institutions alone. Instead, governments, regulators, banks, telecommunications providers, digital platforms and law enforcement must share responsibility.
Key themes emerging from the discussion included:
1. Consumer fraud is now a systemic economic threat
Panelists emphasized that scams have become industrialized through digital banking, real-time payments, artificial intelligence, social media and international criminal networks. Fraud now threatens both consumer confidence and the integrity of modern payment systems.
2. Governments must adopt whole-of-ecosystem strategies
Several countries have moved beyond relying solely on banks by introducing national anti-fraud strategies that involve government agencies, financial institutions, telecommunications companies, internet platforms and law enforcement working together.
Australia’s Scam Prevention Framework was repeatedly cited as an international model because it combines legislation, mandatory industry obligations, information sharing, consumer compensation and a National Anti-Scam Centre. Australia has already reduced reported scam losses by more than 20% since implementing these reforms.
3. Canada is moving in the right direction
FCAC Deputy Commissioner Manon Bombardier outlined Canada’s first National Anti-Fraud Strategy, emphasizing:
- a whole-of-government approach;
- establishment of a Financial Crimes Agency;
- development of a Code of Conduct on Economic Abuse; and
- creation of consistent national consumer protections.
She also stressed that financial literacy must be targeted to different demographic groups rather than relying on a “one-size-fits-all” approach.
4. Prevention must occur before money leaves an account
India demonstrated how fraud prevention is increasingly becoming proactive rather than reactive through:
- behavioural and device-based risk monitoring;
- AI detection of mule accounts;
- stronger authentication;
- real-time fraud intelligence sharing;
- rapid reporting channels;
- risk-based transaction friction; and
- proposals placing the burden on banks to prove customer liability while compensating
innocent victims.
5. Crypto fraud requires international cooperation
Japan noted that crypto fraud is:
- inherently international;
- increasingly driven by AI and social media;
- difficult to investigate because offenders operate offshore.
Japan argued that stronger domestic regulation must be complemented by:
- harmonized international rules;
- supervisory cooperation;
- faster information sharing; and
- closer cooperation with technology companies.
6. Behavioural science must become central to fraud prevention
Italy emphasized that most scams exploit predictable human behaviour rather than technology.
Fraudsters manipulate:
- fear of missing out;
- urgency;
- trust;
- overconfidence;
- confirmation bias;
- social proof; and
- celebrity endorsements generated through AI.
The panel argued financial education should teach consumers how scammers manipulate
emotions—not simply provide financial knowledge.
7. Liability changes behaviour
The United Kingdom demonstrated that mandatory reimbursement has fundamentally changed incentives.
Under its Authorized Push Payment (APP) reimbursement regime:
- victims receive reimbursement up to £85,000;
- sending and receiving institutions share liability;
- firms have strong incentives to improve fraud prevention;
- 88% of stolen funds have been reimbursed; and
- 83% of claims have been resolved within five business days.
Early evidence also indicates significant reductions in APP fraud and improved bank investment in fraud controls.
8. Digital platforms must share responsibility
Panelists consistently observed that scams frequently begin on:
- social media;
- search engines;
- messaging platforms; and
- telecommunications networks.
They argued that technology companies should be required to verify advertisers, remove fraudulent content quickly and cooperate more closely with regulators.
9. International information sharing is essential
Speakers repeatedly emphasized the need for:
- common fraud taxonomy;
- cross-border intelligence sharing;
- supervisory cooperation;
- common regulatory standards; and
- faster exchange of fraud intelligence across jurisdictions.
Without international cooperation, national efforts will remain only partially effective.
Overall Takeaway
Perhaps the strongest message from the OECD panel was that fraud prevention is shifting from consumer responsibility toward shared responsibility. Leading jurisdictions are increasingly expecting banks, payment providers, technology companies and governments to prevent scams before losses occur, rather than simply educating consumers after the fact. Financial institutions are also being held more accountable through stronger legal duties, proactive fraud detection, mandatory reimbursement and greater cooperation across sectors.
