Digital financial governance and the preventive role of bullion services against Ponzi scheme fraud

Abstract

Background: The rapid growth of digital financial services has increased public access to investment opportunities but has also intensified the risk of Ponzi scheme fraud. Strengthening digital financial governance requires preventive mechanisms that promote transparency, accountability, and consumer protection. Bullion services have emerged as asset-backed investment alternatives with the potential to reduce public exposure to fraudulent investment schemes. Methods: This study employs a normative juridical approach using statutory, conceptual, and comparative legal analyses. Relevant laws and regulations concerning financial services, consumer protection, and bullion-based investment products in Indonesia were examined. Comparative analysis was conducted to evaluate regulatory practices and Ponzi scheme prevention mechanisms in selected jurisdictions. Findings: The study finds that bullion services contribute to digital financial governance by supporting transparency, regulatory compliance, institutional accountability, and asset-backed investment practices. Unlike Ponzi schemes, bullion services are supported by tangible underlying assets and supervised financial operations. The findings also indicate that the integration of digital technology, legal oversight, and financial literacy enhances the preventive capacity of bullion services against investment fraud. Comparative analysis shows that effective regulatory supervision strengthens protection against fraudulent financial schemes. Conclusion: Bullion services represent an important preventive instrument within digital financial governance by providing legally protected and asset-based investment mechanisms. Strengthening regulatory supervision, institutional accountability, and digital financial literacy is essential to maximizing their role in preventing Ponzi scheme fraud and enhancing consumer protection. Novelty/Originality of this article: This study offers a novel legal perspective by positioning bullion services not merely as investment products but as preventive governance instruments against Ponzi scheme fraud. It contributes to the literature by linking digital financial governance with bullion-based investment as a legal and institutional mechanism for improving financial security and consumer protection in the digital era.