Around one in five (18 per cent) people across the UK have fallen victim to a financial scam, such as a fake pension or investment opportunity, over the past year, Citizens Advice research shows.
The charity estimates that nine million people have been affected.
More than two-fifths (43 percent) of people scammed had to borrow or increase their debt in some way to get ahead, and almost a quarter (24 percent) had to turn to friends or family for help financial. A fifth (20 percent) had to take on extra jobs or shifts at work, according to Savanta’s survey of more than 2,100 people.
As part of its scam awareness campaign, Citizens Advice wants to help people stay safe by exposing the tactics of scammers.
It said the most common financial scams included fake debt advice offered on social media, scammers posing as a “friend in need”, pension scams, investment scams and parking QR code scams in which They place stickers with fake codes over genuine codes on the car. parks.
Around one in five (18 per cent) people across the UK have been the victim of a financial scam (file photo)
More than two-fifths (43 percent) of people scammed had to borrow or increase their debt in some way to get ahead (file photo)
QR code scams direct people to fake payment websites where their personal and financial information is stolen.
According to research conducted in August, more than three-quarters (76 percent) of all types of financial scams were carried out through social media sites.
A man contacted Citizens Advice after falling victim to trading and cryptocurrency fraud.
He had watched an online video tutorial about a legitimate trading system, but alongside it was an advert leading to a fake platform run by scammers, the charity said.
The man said: “After I started investing money in the ‘trading system’, I immediately received aggressive phone calls several times a day, saying: ‘You have to keep trading or you will lose everything.'” All requests to withdraw my money were ignored.
‘It is a very unpleasant, stressful, intense and coercive experience. I was frantic, traumatized and couldn’t bear to tell my family how much I had lost.
‘I have never experienced financial problems as disastrous as this in the past. I had paid off my mortgage and had a nice house, a family home. I had no idea that all that could be lost so easily overnight.
Dame Clare Moriarty, chief executive of Citizens Advice, said: “Anyone can fall victim to a scam and we know that scammers not only target those looking to invest money, but also those simply going about their daily lives.”
According to research conducted in August, more than three-quarters (76 percent) of all types of financial scams were carried out through social media sites (file photo).
Man contacted Citizens Advice after falling victim to trading and cryptocurrency fraud (file photo)
‘It is particularly worrying to see the subsequent impact on people’s finances, especially if they have to borrow to survive.
“It is important that we are all on our guard: if you are not sure about something, take your time and ask for advice.”
Lord Michael Bichard, chairman of National Trading Standards, said: ‘As the cost of living remains high, criminals are preying on people looking for ways to strengthen their finances or reduce their debts. Not only are their money stolen, but the effects on their health and well-being can be devastating.
‘People should be wary of anyone offering financial advice out of the blue, especially on social media.
‘We urge anyone who has been a victim of a scam to report the crime. “The underreporting of scams is a major problem and we need people to come forward so we can stop these criminals in their tracks.”
John Herriman, chief executive of the Chartered Trading Standards Institute (CTSI), said: “CTSI is very concerned to see the number of people who are targeted by financial scams each year, whether it be fake debts, pension advice or parking scams.”
‘The large number of people affected by these scams shows that there is an urgent need for greater consumer awareness in this area. The hope is that this campaign will remove the stigma associated with being a victim of a scam and that those affected can be empowered to come forward and help take on these criminals.’
Jane Parsons, consumer expert at Citizens Advice, said the main warning signs of scams include something that seems too good to be true, when you are pressured to transfer money quickly, asking you to pay in an unusual way, such as using a voucher or transfer service, you are asked for personal information such as passwords or signs that the person or organization is not genuine, such as a strange email address.
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