An alarming one in five UK residents has been caught out by financial scams in the past year, according to new research from Citizens Advice. The charity estimates that around nine million people have fallen prey to fraudsters, with fake pension schemes, investment opportunities, and parking QR code scams among the most common tactics used.
Financial Fallout for Victims
The survey, conducted by Savanta in August and covering over 2,100 participants, found that more than two-fifths (43%) of those affected had to borrow money or increase their debt to stay afloat. Nearly a quarter (24%) sought financial help from family or friends, while 20% had to take on additional jobs or shifts to recover from the financial hit.
One scam victim shared their traumatic experience, detailing how they lost their savings after being drawn into a fraudulent investment scheme. “I had paid off my mortgage and lived comfortably,” the victim said. “But overnight, everything was gone. I had no idea how quickly things could spiral out of control.”
Scams Awareness Campaign
As part of its Scams Awareness initiative, Citizens Advice aims to shed light on the tactics scammers use to target people. The most frequent scams reported include fake debt advice on social media, imposters posing as friends in need, and fraudulent pension and investment schemes. Another rising trend is the use of fake QR codes at parking lots, directing unsuspecting users to fraudulent payment websites where their personal and financial details are stolen.
The charity’s chief executive, Dame Clare Moriarty, warned that these scams are increasingly affecting ordinary people going about their daily lives. “Anyone can fall victim to a scam,” Moriarty said. “It’s particularly concerning to see how many people have to borrow money just to cope with the aftermath.”
Social Media: A Haven for Scammers
The research found that over three-quarters (76%) of financial scams were conducted through social media platforms. Scammers often impersonate legitimate entities or individuals, making it harder for victims to identify the fraud. One man told Citizens Advice that he was lured into a fake cryptocurrency trading platform after watching what appeared to be a legitimate video tutorial.
“I started investing and then got bombarded with aggressive calls demanding more trades, or they said I’d lose everything,” he explained. His requests to withdraw funds were ignored, leaving him traumatized and unable to tell his family how much he had lost. “It was an overwhelming, coercive experience,” he added.
National Trading Standards Warns of Scam Surge
Lord Michael Bichard, chairman of National Trading Standards, highlighted the danger of scammers preying on people struggling with the cost of living. “People should be wary of unsolicited financial advice, particularly on social media,” he said, urging victims to report scams. “Underreporting is a major issue. The more people come forward, the better we can stop these criminals.”
John Herriman, chief executive of the Chartered Trading Standards Institute (CTSI), echoed the call for more consumer awareness. He emphasized that victims should not feel ashamed and should report incidents, enabling authorities to gather accurate data and respond quickly to new threats.
Citizens Advice Tips to Avoid Scams
Jane Parsons, a consumer expert with Citizens Advice, provided the following red flags for potential scams:
- Too good to be true – Promises of unusually high returns, like suspiciously lucrative pension schemes.
- Pressure to act fast – Urgent requests to transfer money quickly.
- Unusual payment methods – Being asked to pay with iTunes vouchers or through transfer services.
- Requests for personal information – Including passwords, Pins, or verification codes.
- Questionable authenticity – Details that seem off, such as unusual email addresses. Always double-check if in doubt.
Citizens Advice and trading standards organizations continue to urge consumers to stay vigilant, report suspicious activity, and seek trusted financial advice before making any major decisions.
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