October 20th 2024.
According to recent research by Citizens Advice, it is estimated that nearly one in five people in the UK have fallen victim to a financial scam in the past year. That's a staggering nine million people who have been affected by various scams, ranging from fake pensions and investment opportunities to QR code scams and even fake debt advice offered on social media.
The impact of these scams goes beyond just financial loss. The survey conducted by Savanta revealed that more than two-fifths of those who were scammed had to borrow money or increase their debt in order to get by. Some had to rely on friends and family for financial help, while others had to take on additional jobs or shifts at work just to make ends meet.
In light of these alarming statistics, Citizens Advice has launched a Scams Awareness campaign to educate people about the tactics used by scammers and how to spot them. One of the most common ways scammers operate is through social media, where they pose as a "friend in need" or offer fake debt advice. They also target unsuspecting individuals with enticing offers of high-yield pensions or investment opportunities.
Another tactic used by scammers is QR code scams, where they place stickers with fake codes over genuine ones in car parks. These codes lead people to fake payment websites where their personal and financial information is stolen. The research also found that more than three-quarters of all finance scams are carried out through social media.
One man who fell victim to a trading and cryptocurrency fraud shared his experience with Citizens Advice. He had watched an online tutorial video about a legitimate trading system, but along with it was an advertisement for a fake platform run by scammers. He was then bombarded with aggressive phone calls and was pressured to keep trading or risk losing everything. Despite his attempts to withdraw his money, he was ignored and ultimately lost a substantial amount.
Jane Parsons, a consumer expert at Citizens Advice, warns people to watch out for warning signs of scams, such as offers that seem too good to be true, pressure to transfer money quickly, and unusual payment methods. She also advises to be cautious of any organization or person that doesn't seem genuine and to always take a step back and double-check if there are any doubts.
The devastating impact of falling victim to a scam is not just limited to financial loss. It can also take a toll on a person's mental and emotional well-being. Dame Clare Moriarty, chief executive of Citizens Advice, emphasizes the importance of being vigilant and seeking advice when unsure. She also highlights the worrying trend of people having to borrow money to get by after being scammed.
Lord Michael Bichard, chairman of National Trading Standards, echoes these concerns and urges people to report any scams they have fallen victim to. He also urges the public to be wary of unsolicited financial advice, especially on social media. By reporting scams, it allows for more accurate information to be collected and for preventative measures to be put in place.
John Herriman, chief executive of the Chartered Trading Standards Institute, shares the concern over the number of people targeted by financial scams every year. He hopes that through this campaign, the stigma surrounding being a victim of a scam can be removed, and those affected can feel empowered to come forward and help bring these criminals to justice. He also emphasizes the importance of reporting scams to identify emerging issues and take action against them.
Have you ever been the victim of a financial scam? We would like to hear about your experiences. Please share them in the comments below.
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