Scammers have swindled money from one in five adults in the past year, a new report claims.Â
The vast scale of fraud across the UK has today been laid bare in a report from the Global Anti-Scam Alliance (GASA).
More than two in three adults have come across a scam in the past year, the report – published in collaboration with fraud prevention service Cifas and software company Tietoevry – shows.
Meanwhile, one in five adults have been targeted by crooks and had money stolen. On average, criminals stole £878.60 from each victim.
But this figure surprisingly soars among young adults, who are typically thought to be more aware of the tricks crooks use to target their victims.
One in six parents with children aged seven to 17 say their child has been the victim of a scam
Millennials, aged 29 to 44, had an average of £1,456.90 pilfered by fraudsters – more than tripled that lost by Generation X. Those aged 45 to 60 lost £444.10 each.
Experts warn social media platforms, where young people spend a lot of their time, are home to droves of scammers.
Most of the scam encounters in the country – whether successful or not – happen on platforms where there is a direct message option for the scammers to conjure their lies.
Email and text messages are often used by scammers, but so are social media platforms and instant messaging apps.
Plus, around one in six parents with children aged seven to 17 say at least one has been the victim of a scam.
But despite high losses and swathes of victims, four in five Britons claim they can recognise a scam, with 5 per cent stating they can ‘always’ spot a fraudster.
Gunnar Koren, head of financial crime prevention at Tietoevry, says: ‘While 80 per cent of people feel confident spotting scams, professional fraudsters have evolved far beyond what most consumers are prepared for.
‘Operating on a global scale, using crime-as-a-service networks and artificial intelligence-driven tactics, today’s criminals create highly targeted and convincing attacks.’
The report also claims some £9.4billion has been stolen from innocent victims in the past year, based on results from a poll of 2,000 consumers.
What scams are victims falling for?
Shopping scams are the most common type of scam tricksters are using to target innocent households, the report shows.
Some 45 per cent of people experienced at least one shopping scam in the last 12 months.
This is where a victim pays for an item or a subscription they never received.
This scam is a type of authorised fraud. Also known as APP (authorised push payment) fraud, this is when a victim is tricked into sending money to someone they believe is a legitimate payee.
Crooks engage in clever social engineering techniques to gain your trust, whether that’s posing as an official such as a bank or police officer, or acting as an interested romantic partner simply to obtain your money.
Then a victim willingly transfers money to a scammer, thinking they are someone else or the money will be used for a different reason.
For a shopping scam, this may be paying for garden furniture via an online marketplace which doesn’t exist or buying a birthday present on a website which never arrives.
Mike Haley, chief executive of Cifas, says: ‘Fraud is a national emergency costing the UK billions each year and affecting millions of lives. What’s especially alarming is the growing number of younger victims, including children, being targeted by increasingly sophisticated scams.
‘As we head into the busiest shopping season of the year, it’s vital that consumers stay vigilant and verify before they buy.’
An unexpected money scam was also a rife tactic deployed by crooks as 37 per cent of those who have been contacted by a scammer had experienced this type of trick.
Perhaps you’ve been messaged by someone claiming you’ve won a prize or a lottery, but in order to claim it you must either pay a fee or provide your sensitive financial details. This is a regular trick used by crooks to prey on your excitement.
A fake invoice scam (33 per cent) was also commonly experienced by households. This is where you pay an invoice or a debt but in fact the debt was not yours or never existed.
Scammers can steal money without your knowledgeÂ
Identity theft is also a common fraud tactics used by crooks as 35 per cent of those who have been contacted by scammers have come across this.
This is where your credit card is used without your knowledge or consent, or when your personal accounts such as online banking was accessed for financial gain.Â
This report comes after banking group UK Finance last month revealed its six-monthly fraud report. It revealed both unauthorised and authorised fraud have grown compared to the first six months of 2024.
It said unauthorised fraud is where crooks make payments using stolen card details or compromised bank accounts.
An example of unauthorised fraud is remote purchase fraud. This where tricksters use stolen card details to buy something on the internet, over the phone or through mail order.
The amount lost to unauthorised fraud has dropped by 3per cent to £372million – but the number of cases has soared by some 19 per cent to 1.98 million, UK Finance said.
The victim may not even know that their card details have been stolen and could still have their physical card with them when the fraud occurs.
That is because, in some cases, the details are stolen by criminals who hacked into the online systems of retailers and other businesses and took the details of their customers. Worryingly, the details can be used months or even years after the data breach.
They could also steal cards by distracting victims while they are using an ATM or by attaching a device to the machine.
When you make a purchase online, your current account provider will often ask you to pass an additional level of security – especially if you are making a payment to someone for the first time.
You will be sent a one-time password (OTP) to your mobile phone, which you then have to input before the transaction goes through.
This is designed to stop fraudsters from making unauthorised transactions if they get hold of your card details. OTPs can also be used to register your card in a virtual wallet such as Apple Pay or Google Pay.
However, UK Finance warned fraudsters use social engineering techniques to trick their victims into handing over the OTPs.
These victims are protected against losses – and are refunded in more than 98 per cent of cases, according to the UK Finance data.
How can I protect myself?
There are telltale signs you are being conned. You may be contacted out of the blue, told something too good to be true and even rushed into sending money or providing your details.
You should be wary if anyone contacts you out of the blue – even if they claim to be an official such as a police offer or from a bank – and asks for your Pin, password, an OTP, for money or to move away from an official payment website to pay money, the Government says.
If you realise you are speaking or messaging a scammer, you may feel like angrily messaging or shouting at them. But avoid this as experts say it shows weakness that the scammer may later try to exploit.
You may even be tempted to play along with their ruse and give false information to waste their time. Insiders say avoid this.
A fresh wave of AI fraud means speaking to a scammer for just three seconds could put your voice at risk of being cloned.
A scammer could use your cloned voice to scam your friends or family into sending them money.
Experts now say you should wait for the person at the other end of the line to speak first when you receive a call from an unknown number.
It’s a good idea to create a family safe word to use, so your parents, children or friends know they are speaking to the real you, if they get a phone call or a voice note from an unknown number with the sound of your voice.
If you have fallen for a scam, contact your bank immediately. You should also report it to Action Fraud. Go to www.actionfraud.police.uk or phone 0300 123 2040.
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