The time we live in brings significant challenges for consumers, but also for society as a whole, because life and business are largely conducted online, which carries certain risks such as financial fraud. This paper deals with the issue of consumer protection with an emphasis on the growing risks of financial fraud in the Internet environment. Consumers face numerous challenges, ranging from potential financial losses due to fraud to both intentional and unintentional involvement in criminal activities, such as money laundering. The paper begins by defining the concept of consumer in the context of these challenges and continues with an analysis of the various types of financial fraud that consumers in Croatia are exposed to and that Croatian institutions warn them about. Statistical data of the Ministry of the Interior of the Republic of Croatia on financial frauds committed in Croatia were processed. In addition, the paper explores and analyzes the role of artificial intelligence, emphasizing that artificial intelligence can be an aid to fraudsters, but it can also be a key tool in the fight against them. On the other hand, one of the key topics of the paper is the role of institutions and financial literacy, as well as information and digital literacy in protecting consumers from financial fraud. Financial literacy enables consumers to better understand financial products and avoid risky situations, while information and digital literacy empowers consumers to recognize and avoid potential fraud in the online environment. The results of the Croatian National Bank's research on financial literacy in Croatia are also presented and analyzed. The conclusion of this paper is that while there is a clear awareness within the banking system and across Croatia of the importance of financial literacy and the risks consumers face from financial fraud, the efforts being made to address these issues remain insufficient.