Financial literacy and online fraud prevention

Financial education plays a vital role in supporting national economic development by promoting financial stability and fostering financial market development. Improving citizens’ basic financial and economic education helps them select and use financial products and services that meet their needs, manage income, expenditure, borrowing, and investments responsibly, build resilient saving, cultivate risk management habits, protect themselves from fraudulent schemes, and make informed decisions based on reliable data.

In recent years, financial products and services, financial technology (fintech), digital banking, payment systems, and other technological innovations have been developing rapidly, expanding public access to fast and convenient remote financial services. At the same time, financial fraud and scams are becoming increasingly sophisticated, exploiting gaps in citizens’ financial education, digital security awareness, and access to reliable information. Common methods include phishing, fraudulent links and websites, fake online shopping platforms and lottery schemes, and the use of false information featuring the names and logos of banks and financial institutions to obtain individuals’ account details and personal information, resulting in substantial financial losses for the public. According to information provided by law enforcement authorities, a total of 27,200 criminal offences were registered in the first half of 2026, of which 9,400, or 34.4 percent, were committed in cyberspace. Of the cybercrimes recorded, 7,200, or 76.5 percent, involved cyber-enabled fraud.

Identifying accounts and transactions associated with victims of online fraud, detecting suspicious accounts, temporarily suspending or freezing transactions and accounts, and recovering and returning victims’ funds can be delayed due to the involvement of multiple institutions and existing legal and regulatory arrangements. These delays create additional risks, as funds may be rapidly withdrawn as cash or transferred abroad through multiple payment channels and accounts before preventive action can be taken.

Therefore, an integrated approach is needed to strengthen technological solutions for the timely exchange of information between institutions, implement preventive measures to improve financial education and information security awareness, and enhance the relevant legal and regulatory framework. These measures are essential to enable the rapid detection and resolution of fraud cases, minimize financial losses, and improve the protection of citizens from online financial fraud.

The Bank of Mongolia’s Medium-Term Strategy for 2026–2030 provides for the establishment of a framework for protecting the rights and interests of financial consumers. To achieve this objective, the following strategic pillars will be pursued:

• Improve the legal and regulatory framework for the protection of financial consumers’ rights and interests.
• Continuously enhance basic financial and economic education among the public.

Enhancing public financial and economic education

• Implement the 2024–2030 Strategy for Enhancing Basic Financial Education and the Strategy for Enhancing Basic Economic Education among the Public, while improving the training system to strengthen public understanding of fundamental financial and economic concepts, financial fraud, and information security. Deliver targeted training to specific population groups through multiple communication channels, leveraging technological advancements and innovative teaching methodologies to improve public knowledge and awareness.
• Expand trainer certification networks and deepen partnerships with multilateral international organizations to elevate the quality, reach, and effectiveness of financial literacy programs.

Preventing financial fraud

• Implement public awareness initiatives in cooperation with other government and non-governmental organizations to strengthen citizens’ financial education, legal awareness, and information security knowledge, with a focus on preventing financial fraud.
• Gradually introduce an integrated Suspicious Transaction and Account Registration and Reporting System, supported by real-time intelligence exchange among the Bank of Mongolia, law enforcement, commercial banks, NBFIs, and PSPs, this platform will enable rapid threat detection, automated holds on suspicious transfers, and timely asset containment.

Improved public financial education and awareness will strengthen citizens’ ability to select and use financial products and services that meet their needs, and to effectively manage income, expenditure, savings, borrowing, and investments. This will contribute to financial stability, reduce the risk of falling victim to cyber-enabled financial fraud, and strengthen the protection of financial consumers’ rights and legitimate interests.

Automated, rapid-response freezing protocols will minimize victim losses by intercepting fraudulent flows prior to multi-layering or international exfiltration, ensuring more effective and tangible protection of financial consumers’ interests.

Formalized real-time intelligence exchange between banks and law enforcement will be strengthened, reinforcing an integrated system for combating cyber-enabled financial fraud.