As many as 15 million Brits could have fallen victim to scams in the past 12 months, according to new research from Wise, the international money app.
According to a poll of 2,000 UK adults, Wise found that 28 per cent of Brits have lost money to scammers, highlighting the need for increased awareness and protective measures as scams become more sophisticated.
Among those hit by scams, 17 per cent reported a significant financial impact, with 10 per cent even having to delay retirement plans as a result.
The situation does not look likely to improve in the future either, with 41 per cent of Brits contacted by scammers within the last year. While 49 per cent of respondents remain confident they know what to do if scammed, a huge 85 per cent still expect to be scammed in the future.
‘Take time to stop, think, seek advice’
To protect Brits from scams, Wise has launched the Royal Academy of Scamatic Arts (RASA), with support from financial crime prevention specialists We Fight Fraud.
The Academy launches with a series of videos that go behind the scenes of the fictional institution and focuses on five of the most common types of scams: impersonation, rental, employment, investment and marketplace.
RASA aims to educate pupils about the techniques scammers use – even as their tools become more sophisticated. By learning these techniques, it becomes easier to spot the consistent red flags that scams display.
Tony Sales, chief innovation officer at We Fight Fraud
Tony Sales, chief innovation officer at We Fight Fraud, decided to help people protect themselves from financial crime when serving a prison sentence and has since become an internationally leading fraud expert. He explained: “While scammers are using increasingly sophisticated means to steal people’s money, there are red flags that may indicate whether something is a scam.
“Scammers tend to offer something that is too good to be true, say an unreal investment return. They will often put you under pressure to act quickly before you can discuss with others or check with a trusted source. They may also try to take the payment away from a ‘legitimate’ site.
“Before making a payment, take time to stop, think, seek advice and, if you are concerned you’ve been scammed, protect yourself by contacting your financial provider and Action Fraud.”
Investing in fraud prevention
Wise has also invested in machine learning models that support spotting and preventing fraud and scams, operates 24/7 phone support for those concerned about scams and offers a range of customer-facing features to keep customers safe. This includes secure communication codes, unique to each customer, so they know they are being contacted by Wise rather than an impersonator.
Aaron Wilson, fraud prevention lead at Wise
Aaron Wilson, fraud prevention lead at Wise, discussed the news: “Education is key to preventing scams. This year, we’ve seen a significant reduction in the amount of scams on our platform, thanks to our investment in scam prevention.
“However, awareness and education are the most effective way to stop scammers. By partnering with We Fight Fraud and launching this campaign, we are committing to educate our customers and the wider public on how to stay safe.”
The research indicates that scammers are not just relying on pressure tactics reported by 19 per cent of respondents), or intimidation (15 per cent), but are increasingly using more complex methods. A quarter of those scammed in the past year were caught completely unaware. Thinking about the future, 60 per cent of respondents expressed concern that advancements in AI would make scams harder to detect.
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