Could you be the target of a financial scam? UK savers have lost more than £17bn

Recent research from Canada Life has highlighted a concerning rise in financial scams affecting UK residents.

According to the new study, a staggering 51 per cent of UK adults have either been targeted by or know someone who has been targeted by a financial scam in the last year.

This equates to approximately 26.8 million people, and alarmingly, 3.6 million of those went on to fall victim to the scammer’s increasingly complex tricks.

The financial impact

The average individual loss stands at £4,715, totalling a national loss of £17 billion according to the report.

Although 43 per cent of victims were able to recover all their lost funds, a worrying 26 per cent failed to recover any money.

The most common scams include:

  • Tax or Debt Collection Scams (32 per cent)
  • Advance Fee Scams (25 per cent)
  • “Hello Mum” Scams – an advanced phishing technique aimed at parents (23 per cent)

While those aged 55 or over are more often targeted, they are less likely to fall victim than younger demographics. This goes against perceived misconceptions about the age of scam victims.

In fact, young adults (18–34) were found to be particularly vulnerable, with 18 per cent falling victim to scams.

The role of technology

Interestingly, seven per cent of those targeted reported that Artificial Intelligence (AI) technology was used in the scam attempt.

A notable 67 per cent of UK adults believe that AI will lead to more sophisticated financial scams in the future.

Lack of reporting

While Canada Life’s study was able to provide some insight into financial scams in the UK, approximately 30 per cent of victims did not contact any authorities after the scam attempt, a figure that rises to 38 per cent among those aged 55 or over.

When support was sought, victims usually turned to their banks, police, family members, or the platform where the scam occurred.

Given these statistics, we strongly urge you to exercise increased caution in all financial dealings and communications. If you have any concerns or wish to discuss safeguarding measures, please don’t hesitate to contact us.

Posted in Blog, Wealth Management News.