MercoPress. South Atlantic News Agency

Digital Consumer Protection: Latin America’s Next Big Challenge

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Latin America's online economy has expanded rapidly, and millions of people now rely on digital services to perform everyday tasks. But this has also exposed users to problems that are becoming harder to overlook.

Reports of fraud, unclear terms of service, and careless handling of personal data are now common. These issues are accumulating at a faster rate than most national rules can evolve. The question of how to protect users is shifting from a secondary issue to a primary concern for governments, regulators, and the companies shaping the online marketplace.

Daily Life Has Moved Online for Millions in Latin America

Across Latin America, online platforms have become a part of daily life. People are dependent on them because they save time and eliminate the barriers that used to complicate simple tasks.

In Mexico, for example, users use apps such as Mercado Libre or Amazon to replace household items without having to travel far. What used to require a trip to the next city now needs just a couple of taps on a screen; items arrive at the doorstep in days, often at a reduced cost and with more choice.

Entertainment has followed the same path. Online casino platforms, especially those licensed in Europe, have become quite popular across the region. Known for offering the best online casino bonuses, creative gameplay, and fast, responsive support, they’ve become a regular part of online leisure for users in countries like Brazil, Chile, and Mexico.

Streaming services have also altered normal habits. A young worker in Argentina may finish dinner, open a platform, and select from thousands of films or shows without having to wait for broadcast schedules. It's simple, flexible, and fits around unpredictable routines.

As these digital habits take hold, the region faces an emerging challenge: ensuring that users can navigate these spaces while avoiding scams, having their privacy violated, or falling prey to predatory practices. The convenience is real, and so is the need for serious protection.

Latin America's Digital Economy Is Growing Fast

According to the GSMA, in 2024 alone, mobile services contributed approximately $550 billion to Latin America's economy, representing over 8 percent of the region's total GDP.

In Argentina, banking apps have become the norm for checking balances or paying bills. In Colombia, urban transport has been changed by ride-hailing apps.

Several factors are driving this growth. Affordable internet plans, increased mobile coverage, and government-funded connectivity programs have all contributed.

However, this quick adoption has its new challenges, too. Regulators are under pressure to modernize laws and close the gaps. That includes keeping up with mobile wallets and other tools that did not exist a few years ago.

At the same time, digital access is uneven. In cities like Lima or Santiago, internet speeds are consistently high and stable. However, in remote areas of Ecuador or Bolivia, unstable connections persist. Any serious consumer protection plan will need to operate effectively in both worlds: urban and rural, as well as online and offline.

What’s Putting Users at Risk Online

Online threats are on the rise in Latin America. Cyberattacks increased 39 percent during the first half of 2025. The most common tricks include fake websites, malicious app downloads, and phishing messages.

Financial platforms are the primary targets. Other attacks include leaking shopping data to apply for credit or being harassed with emails or phone calls.

Some groups are more vulnerable. Older adults, as well as families new to using digital tools, are more likely to be victims of fake offers or misleading links, especially when no clear warning or assistance is available.

There's also the broader issue of enforcement. In countries with less oversight, bad actors often operate with little pushback. Some schemes are operated from overseas, so it is more difficult to track or shut down these types of schemes. Furthermore, algorithm-driven ads can now target users with a level of precision that often blurs the line between marketing and manipulation.

Solving this won't be achieved by a single fix. Basic safeguards such as two-factor authentication help. Similarly, there are public awareness campaigns aimed at educating people about what to watch out for. However, unless these efforts are expanded, more users will be put at risk.

Getting the Basics Right

Good protection starts with the basics. Platforms need to be clear about what users are signing up for: what they're paying for, how refunds work, and what happens to their data. When that's visible from the beginning, problems are minimized, and trust increases.

Strong payment systems are also great here. Encryption and real-time surveillance are essential, but many of the services used are built on outdated setups, which make users vulnerable.

Digital literacy is a topic that is often overlooked. Local workshops and school-based programs that aim to educate people on how to avoid fake link or how to verify a seller's reputation can help close some significant gaps, especially in areas new to online platforms.

Technology is also an aid if used effectively. AI tools will be able to detect suspicious activity before it becomes a problem. Blockchain records can be used to resolve disputes in trans-border transactions.

Progress Depends on Coordination

The digital economy in the Latin American region is experiencing tremendous growth. That growth will stall if users do not feel safe. Deepfake scams, silent data trades, and black-box ad targeting are all problems in themselves; most laws weren't designed to address these issues. The region doesn’t need more slogans. It needs action that sticks, rules that hold, and systems that don’t leave users behind.