If the trend continues, households are projected to lose over £1 billion by year-end. UK Finance, the banking trade association, reports a significant increase in romance scams (up by 29%) and ID thefts, which have witnessed a surge of over 50% to £33 million in just six months.
Romance scams are especially alarming, as fraudsters feign romantic interest in victims to extract money, with these scams costing the vulnerable around £18.5 million. Meanwhile, Authorised Push Payment (APP) fraud, where victims are tricked into online fund transfers to scammer-controlled accounts, has also risen by 22% to £240 million. However, there is a silver lining; the overall consumer loss to scams saw a 2% decrease from the previous year, and cases where fraudsters impersonated banks or the police fell by 35%.
UK Finance’s Managing Director of Economic Crime, Ben Donaldson, highlighted that criminals are increasingly exploiting various platforms like social media, emails, and texts. While they’re stealing significant amounts, the emotional and psychological toll on the victims cannot be ignored. Liz Ziegler from Lloyds Banking Group also stressed the growing menace of social media scams. According to their research, over two-thirds of online shopping fraud originates on Facebook. Tech and social media companies are urged to take preventive measures, ensuring the safety of their users and actively participating in reimbursements when scams occur on their platforms.