A fifth (21%) of UK adults fell victim to financial scams in the last 12 months, new research from Canada Life has shown, with many saying it had affected their mental wellbeing and their trust of people.
This number rises to just under two fifths (39%) among those aged 18 – 34 years, Canada Life said.
On average, people lost £294 to scams, with younger people losing as much as £450.
Canada Life’s research found that in total, more than half (56%) of UK adults said they or someone they know, have received a suspicious communication over the past year, equating to 29.6 million people across the UK.
Among those who have fallen victim to a scam, the vast majority (83%) said it had taken a toll on their mental wellbeing, while 63% felt foolish for falling for it. Nearly half (49%) said their trust in people had decreased as a result.
The majority of cases were described as “phishing scams” (57%), when a fraudster attempts to imitate a legitimate company or person to secure information. Crypto scams have also grown in popularity, with around 1 in 6 reporting they or someone they know has received one in the last 12 months.
Email was found to be the most common form of approach, accounting for 65% of scams, while 46% were via a text message and two fifths (38%) via a cold call.
A fifth of UK adults had also been approached by phone, text or email offering free pension advice in the last three months, up from 19% in October 2020.
Given the rising numbers, over two fifths (43%) of UK adults said they have become increasingly worried about scams, while a third (34%) were unsure what services to use to help protect themselves against it.
Andrew Tully, technical director at Canada Life, said: “Aspiring fraudsters will stop at nothing to separate innocent people from their hard-earned cash, sometimes using incredibly manipulative and sophisticated techniques which can easily catch you at an unguarded moment.
“Falling prey to a scam can be utterly devastating, not only for the individual involved but also for their family and friends. Futures and livelihoods can be snatched away in the blink of an eye so it’s essential we work harder as an industry to highlight where help and support can be found. Improved education on how to spot a scam and where to report them will also be essential if we are to stand any hope in surmounting this scamming Everest.”
Tully warned that the rising cost of living could spur more people to consider a money offer or easy access to their pension.
“Sadly it’s highly likely it will be scammers, so be aware and follow the simple rule of thumb – if it appears too good to be true, it inevitably is. Simply walk away, hang up, or delete the email or text,” he added.
