Let’s stop online scams

CHOICE has joined over 20 consumer groups from 19 countries in a joint international statement calling on governments across the world to require social media and other tech companies to better protect people from scams, with significant penalties if these tech giants continue to let scams run rampant on their platforms.

Read the full statement below, and add your name to show your support:

As organisations that represent the interests of consumers across the globe, working through Consumers International, we call on governments to require technology platforms to take effective action to protect consumers from scams.

Online scams are on the rise, but global technology companies are failing to detect and prevent scams from reaching consumers through their platforms. Scammers are exploiting lax technology platform protections to easily and cheaply target consumers through social media services, online ads, marketplaces and over-the-top messaging services. These scams are often sophisticated, highly targeted and difficult for consumers to detect.

The rise in scams is a global problem, causing consumers immense financial, emotional and psychological harm. According to the Global State of Scams report, the financial loss due to scams amounts to a staggering $1.026 trillion, equivalent to 1.05% of the global GDP.¹ Only 7% of victims recover their lost funds.² Consumers also experience emotional and psychological harm globally due to scams like emotional turmoil, shame, loss of confidence and other forms of distress.³ Almost 3 out of 5 (59%) of scam victims report a substantial emotional impact, signifying the widespread emotional repercussions.⁴

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

Enhanced Verification Procedures:

Implement stringent and globally consistent verification processes to validate the authenticity of apps, advertising accounts and ads.

Ad Policies and Screening:

Enforce strict ad policies, thoroughly screen advertisements and product listings, and block potentially fraudulent content.

Collaboration with other Services and Authorities: 

There are opportunities to prevent scams if governments enable scam data and trend information sharing between technology platforms, governments and other businesses in the scam ecosystem (such as payment providers, internet infrastructure providers and telecoms companies). 

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

Advanced Monitoring Systems:

Employ new technologies to monitor and flag suspicious activities, patterns, and content associated with scams.

Prompt Content Removal:

Swiftly remove or suspend fraudulent accounts, ads, or content upon detection, disrupting ongoing scam operations.

Education and Awareness:

Provide clear guidelines and routes on how to report scams, what to do if a consumer has been scammed, and how to identify potential scams. The data that is collected from user reporting should be used to understand fraud practices and continuously improve prevention processes.

Clear Reporting Channels:

Establish and promote clear reporting channels for users to report scams, ensuring a timely and effective response.

Victim Support Services:

Provide accessible and comprehensive support services for victims, including notification, guidance, resources for recovery, and legal assistance.

Transparency and Accountability:

Maintain transparent protocols for addressing reported scams and be accountable for the resolution process.