Many people think that financial scams only affect the elderly. But new research by Credit Karma shows that under 35s are now falling for scams more than ever. And while the elderly are more vulnerable to over-the-phone scams, the younger generation is falling for social media and online scams.
In 2020, 27% of Brits between the ages of 18 and 34 were the victim of a scam, but only 11% of those over 35 suffered the same fate. So far in 2021, the numbers are 21% versus just 9% respectively.
As financial scams are increasingly targeting younger victims, what exactly do you need to watch out for?
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What the numbers say
This past May, Qualtrics Research talked to 1,033 UK adults on behalf of Credit Karma to find out how susceptible they are to scams.
The results show that people under 35 are now more likely to fall victims to scams than the elderly. They are falling prey to scammers who:
- Impersonate banks (33%)
- Pretend to be online retailers (27%)
- Use social media (19%)
The under 35s are primarily being targeted for financial scams via texts, emails and social media, with even big names such as Royal Mail and the NHS being used to reach victims. In comparison, millennials and Gen Z are more likely to fall prey to scam calls.
Causes of the increase
Surprisingly, research shows that one of the reasons younger people are falling victims to scams is complacency. A whopping 64% of people under 35 believe they would recognise a scam easily. They also believe most scam victims are older, so their own risk isn’t as high.
The pandemic has opened doors to more online scams as we have been communicating online so much more and it has been more common for companies and organisations to reach out to us using social media, messaging and emails. According to the survey, 53% of Brits have been targeted by scams since March 2020.
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How to protect yourself
In addition to the initial financial impact, scams can also affect your credit score. Akansha Nath, head of partnerships at Credit Karma, explains: “It’s worth checking your credit report regularly for any activity that doesn’t look right, and taking it up with your bank if you notice anything unusual.”
According to fraud prevention organisation Cifas, one of the most important things you can do to protect yourself from fraud is to always be wary of unsolicited messages. Messages might sound innocent, but any email or text requesting personal information is potentially dangerous.
If you don’t recognise the sender or if the message comes through in an unusual way (like via social media), don’t respond to it.
Other things you can do to protect yourself:
- Never share your passwords or PINs with anybody you don’t know
- Keep your virus protection software up to date
- If you receive a call from an organisation that you suspect to be a scam, hang up and call the organisation directly to confirm they’re really trying to contact you
- Do not give out your credit card details to anybody contacting you, especially over the phone
If you believe you’ve been the victim of a scam, contact Action Fraud immediately. You can report fraud or cybercrime at any time of the day or night using their online reporting tool. The organisation has advisors available around the clock to give you help and advice.
