"Digital scams have become a global development challenge, inflicting costs of up to one trillion dollars annually. Beyond financial losses, scams inflict emotional harm and erode trust in digital systems, weakening confidence in governments, financial institutions, and online services. As countries accelerate digital transformation – expanding digital payments, digital public infrastructure, and online public services – scammers are exploiting new and existing vulnerabilities such as gaps in digital literacy, consumer protection, and scam detection capacities.
The threat is especially acute in developing countries, where lower institutional capacities and higher levels of economic precarity increase exposure and amplify losses. Four trends are accelerating this challenge: rapid igitalization, AI enabled scams, expanded demographic targeting, and declining institutional trust. Effectively countering digital scams is essential not only to mitigate harm, but also to strengthen digital trust, support safer participation in the
digital economy, and advance the Sustainable Development Goals. This opportunity hinges on the power of collective action: coordinated efforts across governments, financial institutions, platforms, and civil society that span the full scams lifecycle are essential to increase safety and rebuild trust online.
This brief is intended for policymakers, practitioners, and international and private-sector partners engaged in building safer and more inclusive digital ecosystems. UNDP will work to counter digital scams by aiming to help countries mobilize evidence, strengthen capacity, and create safer, more resilient digital environments. This approach is grounded in UNDP’s whole-of-society digital transformation framework, an intentionally inclusive approach to build ownership, support human-centered design, and mitigate risks. It is informed by UNDP’s work with more than 130 countries to support core digital transformation, including the strengthening of infrastructure and practices that improve integrity, authentication, and data provenance in developing countries." (Executive summary)