The Hidden Tactics Behind Online Financial Scams—and How Platforms Can Stop Them

Emily Jones · 2026-10-20

Online financial scams have become a pervasive crime in the digital age. These fraudulent schemes, designed to extract money from victims, are present across all types of online intermediary services, including Very Large Online Platforms (VLOPs) and Very Large Search Engines (VLOSEs). A new study, procured by the European Commission in 2025 to support its supervisory and enforcement tasks under the Digital Services Act (DSA), provides a typological mapping of financial scam formats across online platforms and assesses existing and emerging mitigation strategies to curb financial scams online. The study was carried out by Open Evidence and Spark Legal and Policy Consulting. It does not evaluate compliance by providers of VLOPs and VLOSEs. ### A diverse typology of scams The study maps different types of online financial scams and categorises them into six broad categories: - Investment scams - Romance scams - E-commerce scams - Employment and collaboration scams - Unexpected gain scams - Disaster relief scams The study finds that investment scams and romance scams are the most common and fastest-growing forms of scams in Europe. It also finds that the scam landscape is increasingly being redefined by overlapping methods across different categories. ### Online platform features and financial scams The study presents information on relevant features related to scams on online platforms, including: - Advertising systems - Recommender systems - Content moderation of organic content - Monetisation systems - App store content and private messaging functions - Inauthentic identities and account manipulation - Deceptive commercial content - Generative AI The study also shows how financial scams operate across different platforms and are facilitated by organised criminal networks. > "Scammers don't just exploit one feature; they weave together multiple platform functions to build trust and extract money." ### What platforms can do to counter financial scams Based on the study's findings, platforms can take several measures to combat financial scams. These include improving detection algorithms, enhancing user reporting mechanisms, and collaborating with law enforcement. Additionally, platforms should consider design changes that make it harder for scammers to operate, such as verifying advertiser identities and limiting the reach of unverified accounts. The study also emphasizes the importance of user education and awareness campaigns to help individuals recognize and avoid scams. ### The role of the Digital Services Act The Digital Services Act (DSA) provides a framework for platforms to address illegal content, including financial scams. Under the DSA, VLOPs and VLOSEs are required to assess and mitigate systemic risks, including those related to scams. The study supports the Commission's enforcement of these obligations by providing a comprehensive overview of the scam landscape and potential countermeasures. ### Key takeaways for business professionals For business professionals, understanding the tactics of financial scammers is crucial. Companies should educate their employees about common scam types and implement robust verification processes for financial transactions. Additionally, businesses operating online should regularly review their platform features to ensure they are not inadvertently facilitating scams. By staying informed and proactive, businesses can protect themselves and their customers from the growing threat of online financial scams.