LV= Report Reveals 18-34 Year Olds Increasingly Targeted by Financial Scams

More young adults are reporting scams than older people and many are losing money to purchase fraud, according to research from life insurance and retirement specialists, LV=, the data revealed that 3.8 million victims in total lost money to a purchase scam last year.

These findings were discovered during wider research from LV= in the latest edition of its quarterly Wealth and Wellbeing Report. The research also examined other types of scams and found that 42% of UK adults have received phishing scams in the last 12 months, just over a third (36%) have experienced a trusted organisation scam, and around a quarter (24%) have suffered a refund scam.

Respondents surveyed were asked if they had lost money to any of the following types of scams:

·       Phishing scams e.g. fake emails, calls or messages asking for personal/financial information

·       Trusted organisation scams e.g. impersonation of trusted organisations such as HMRC or other service providers saying there is a problem, or you owe a fine or similar

·       Refund scams e.g. impersonation of a trusted organisation saying you are due a refund

·       Friend or family scams – messages sent to you claiming to be someone you know asking for money urgently

·       Get rich quick scams – promises that you’ll make money quickly by investing in a company or goods

·       Purchase scams – purchase of fake goods or services via online advertisements for items such as tickets, holidays, vehicles etc.

·       Investment scams – investing money into fake opportunities or pyramid schemes

·       Befriending scams – fake accounts on social media building a friendship and then asking for money

The data revealed that a higher proportion of those aged 18-34 fell victim to each of these scams and lost money because of them.

Those aged 65 and over seem to have experienced fewer financial scams over the last 12 months than others. For example, 42% of those aged 18 to 34 say they have experienced a trusted organisation scam vs 30% of those aged 65+

However, the Wealth and Wellbeing Report shows that adults aged 18-34 are more likely to fall victim to financial scams than any other age group. A possible reason is that those aged 18 to 24 typically spend the most time online (4 hours 35 minutes daily average) compared to the other age groups , according to figures from Ofcom.

LV= Chief Executive, David Hynam, said:

“The LV= Wealth and Wellbeing Research Programme shows that despite a surge of financial scams over the last three years, consumers are still less knowledgeable about reporting them.

“Unsurprisingly our data found that those that regularly saw a financial adviser were more likely to take appropriate action and were aware of the roles that the FCA, FSCS and Financial Ombudsman Service play in helping people who are exposed to scams.

“Even though our data suggests that 18-34 year olds are most likely to fall victim to purchase scams, people of all ages should be wary of unexpected contact such as cold calls, letters or emails that request information about your finances. Watch out for unusually high or unreasonably high returns or if you are being pressured to make a decision quickly. If an offer looks too good to be true, it usually is.”