More than half of UK adults or 56 per cent, equivalent to 29.6m people, have or know someone who has received suspicious communication in the last 12 months, according to Canada Life.
The research found that around 57 per cent of these occurrences are “phishing scams,” in which a fraudster impersonates a reputable firm or person in order to obtain sensitive information from the victim. Crypto scams are also on the rise, with one in every six people claiming that they or someone they know has been the victim of one.
Nearly 65 per cent of fraudsters use email as their primary method of communication, with 46 per cent using text messages and 38 per cent using cold calls.
When asked explicitly about pension scams, a fifth of UK adults claimed they had been approached by phone, text, or email in the last three months offering free pension advice, up from 19 per cent in October 2020.
A fifth of individuals who fell victim to the scam were between the ages of 18 and 34, and this number climbs to just about two fifths among those between the ages of 18 and 34. The average amount of money lost as a result of the con was about £300.
Many victims, or those who knew someone who was, say it has had a significant influence on their mental health and views toward others. Furthermore, many scam victims have little prospect of getting their money back.
Over two-fifths of UK adults are concerned about scammers, and a third don’t know what services they may use to protect themselves. A similar amount don’t know how to avoid being targeted by fraudsters or scams, and nearly three out of ten don’t know who to call if they are defrauded.
Canada Life technical director Andrew Tully says: “Aspiring fraudsters will stop at nothing to separate innocent people from their hard-earned cash, sometimes using incredibly manipulative and sophisticated techniques which can easily catch you at an unguarded moment.
“Falling prey to a scam can be utterly devastating, not only for the individual involved but also for their family and friends. Futures and livelihoods can be snatched away in the blink of an eye so it’s essential we work harder as an industry to highlight where help and support can be found. Improved education on how to spot a scam and where to report them will also be essential if we stand any hope of surmounting this scamming Everest.
“With families trying to make ends meet as the cost of living grows, an offer of money or easy access to your pension early might seem the perfect opportunity to dig yourself out of trouble – at face value. Sadly it’s highly likely it will be scammers, so be aware and follow the simple rule of thumb – if it appears too good to be true, it inevitably is. Simply walk away, hang up, or delete the email or text.”