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Mind the gap: Closing the loopholes in consumer protection in digital financial services

Financial fraud has grown significantly, with losses nearing USD 1 trillion in 2024 alone. This report explores the impact of such fraud on low- to moderate-income (LMI) individuals in developing countries, focusing on Bangladesh, India, and Kenya.

This report examines financial fraud vulnerabilities among low- to moderate-income (LMI) individuals in Bangladesh, India, and Kenya. With 55% of respondents receiving fake calls or SMS, scams like impersonation and PIN compromise disproportionately impact urban women and the underserved. Over 60% of the victims are unaware of grievance mechanisms, leading to unresolved complaints. The report proposes regulatory reforms, awareness campaigns, and technology-driven solutions to improve fraud prevention, grievance redressal, and consumer protection frameworks.

This report has been revised as of 26th March 2025. Please refer to this updated version and discard any previous versions.

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Written by

jayan-nair

Nikhita Jindal

 Assistant Manager
jayan-nair

Surbhi Sood

 Senior Manager
jayan-nair

Vineet Anand

 Associate