In a report released by Barclays, 18% of consumers acknowledged falling victim to scams in the past year, with a staggering 93% of these incidents occurring online.
This disturbing trend highlights an urgent need for enhanced preventive measures as digital platforms continue to be fertile ground for fraudulent activities.
Barclays’ data vividly illustrates January as the peak month for scam claims, predominantly driven by investment scams, which not only represent a mere 4% of scam incidents but astonishingly account for 53% of the financial losses reported. In stark contrast, purchase scams, while comprising the bulk of the scam reports at 74%, accounted for only 24% of the total monetary value lost. This disparity underscores the high stakes involved in investment scams, where the average claim soared to £15,564, signaling the severity and sophistication of these schemes.
The Barclays report also sheds light on the top scams identified by those affected or aware of others who have been targeted. Leading the list are fake delivery scams, affecting 51% of respondents, followed closely by HMRC scams and purchase scams, highlighting the widespread impact and diversity of tactics employed by fraudsters.
Consumer awareness remains high regarding certain scams, with 83% recognizing fake delivery scams and 80% aware of HMRC scams. However, less familiar are the AI cloning and recruitment scams, known to just 62% of those surveyed, indicating a gap in public knowledge on newer forms of fraud.
Barclays Fraud and Scams expert Kirsty Adams emphasizes the continual evolution of scam methods, particularly on social media platforms where the majority originate. Adams stresses the importance of vigilance, especially during high-risk periods like the Christmas and Boxing Day sales. She provides essential tips for consumer protection, including never sharing personal details like bank PINs, verifying company details independently, and maintaining a healthy skepticism towards too-good-to-be-true offers.
Adams also highlights the collective effort needed to combat scams, advocating for stronger cross-industry collaboration as we move into 2025. This unified approach is deemed crucial in turning the tide against the escalating threat of scams.
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