Digital scams have become a major global development challenge, inflicting estimated losses of over one trillion USD annually. Beyond financial harm, these scams erode trust in digital systems, weaken confidence in governments and institutions, and exploit vulnerabilities in public services, infrastructure, and digital payments. Rapid digitalization, including the rise of AI-enabled scams, has expanded both the reach and sophistication of fraudulent schemes, targeting a growing range of demographics and intensifying exposure in countries with higher economic precarity or weaker institutional capacities.
The threat is particularly acute in developing countries, where institutional and digital capacities for detection, consumer protection, and literacy are often lower. Scammers exploit both existing and emerging gaps, taking advantage of new technologies, online platforms, and digital infrastructure to manipulate individuals, access sensitive information, and transfer unauthorized funds. These activities can cause deep emotional, social, and psychological harm, and often rely on tactics such as phishing, impersonation of authority figures, and social engineering to create urgency and pressure victims.
The COVID‑19 pandemic initially drove a surge in digital scams, which has since accelerated with advances in artificial intelligence and other emerging technologies. Globally, more than half of people have been exposed to digital scams, though actual incidences are likely undercounted due to underreporting. Over the past five years, these threats have grown precipitously, sometimes described as a “scamdemic” or “scampocalypse,” reflecting both their scale and complexity.
Effectively countering digital scams is essential for protecting financial systems, sustaining trust, and advancing global development goals. This requires coordinated action across governments, financial institutions, civil society, private platforms, and international partners. Strengthening consumer protection, improving detection, mobilizing evidence, and building resilient digital ecosystems are key to mitigating risks and ensuring inclusive, safe digital transformation.
UNDP’s approach emphasizes human-centered design, local ownership, and systemic capacity-building. Working with over 130 countries, the initiative seeks to enhance practices, infrastructure, and tools for authentication, data integrity, and monitoring while integrating lessons from research on emerging digital threats. By tackling scams comprehensively, countries can safeguard trust, reduce exposure to financial and social harm, and support the sustainable development of the global digital economy.
