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More than seven million UK adults have been hit by a scam in the past year, with 20% of them suffering significant financial loss. citizens advice Has been found.
A survey for the charity revealed that another seven million adults knew of at least one other person who had been defrauded in a scam.
More than a quarter of those personally scammed were targeted while online shopping (26%), mostly with fake websites and counterfeit or non-existent goods.
The findings prompted Citizens Advice to urge consumers to be cautious when taking advantage of shopping deals ahead of Black Friday and Christmas.
Of the 20% of people who were scammed who suffered significant financial loss, 12% said they fell into debt or had to borrow money, and 10% said they had to access emergency savings.
Nearly 20% were unable to perform their work or caring responsibilities as a result of the scam.
Nearly a quarter (22%) transferred money after being pressured or persuaded, and 42% were contacted through social media.
Citizens Advice said those it supported in online shopping scams last year included consumers who spent “hundreds of pounds” on items such as clothes, mobile phones and furniture, only to receive products that were counterfeit, not as advertised, unsafe – or nothing at all.
Many of those scammed reported that the company they purchased from either overcharged their bank account, did not respond, or disappeared online altogether.
Other common scams include investment fraud (18%), such as “get rich quick” and cryptocurrency schemes, as well as fake loans.
About 16% of those scammed were tricked by a friend or family member into believing they needed money urgently.
Another 14% were scammed into taking out a new mobile contract or paying for a new handset.
One woman helped by Citizens Advice was an 84-year-old woman from the North-East Englandwas persuaded to hand over almost £40,000 in cash to scammers claiming to be from her bank’s fraud department.
He used up his life savings, pension money and was pressured to borrow from a friend.
a portion of cash arrived My Being tricked into taking out a five-year monthly-repayable loan for £30,000.
The ordeal left her traumatized and she has since been receiving treatment for depression from her GP.
She said: “The scammers said my identity had been stolen by internal bank staff and the issue should be dealt with in complete confidentiality. It was pressure from the beginning. They don’t give you time to think.
“I had to go to the bank immediately, even though the nearest branch was 30 miles away. I had to send cash in packets worth thousands of pounds to four different addresses, they gave me clear details of how to pack it.
“They caught me in the most vulnerable position I’ve been in for a long time. I thought I was doing my bank a favor by trying to find the breach in their staff. There was always a promise that I would get the money back, but the phone calls started to become less frequent and of course the money never arrived.”
Dame Claire Moriarty, chief executive of Citizens Advice, said: “Anyone can be defrauded and the impact can be devastating, leaving people not only out of pocket but in some cases unable to go about their daily lives.
“It is important to remain vigilant. If you are not sure about something, seek advice. If you think someone is trying to defraud you, take immediate action.”
Labor Rights and Consumer Protection Minister Kate Dearden said: “Too many of us know the devastating consequences of scams. As part of our plan for change, we’ve taken decisive action to improve transparency, including cracking down on subscription traps and banning fake reviews and hidden fees forever.”
Lord Michael Bichard, chairman of National Trading Standards, said: “We urge anyone who has been the target of a scam, no matter how big or small the financial loss, to report it.
“By coming forward, people can get the help they need and their information will be vital in helping stop these criminals in their tracks.”
Citizens Advice warns consumers to be aware of scams if:
– Someone you don’t know contacts you unexpectedly, or asks you to transfer money quickly – You are asked to share personal or security information such as a password, PIN or code – You suspect you are not dealing with a real company – For example there is no mailing address – You are asked to make a payment in an unusual way – Paying by debit or credit card gives you extra protection if things go wrong – The golden rule is that if something looks or sounds too good to be true it may be a scam, so take your time and seek advice
Citizens Advice provides online advice and a consumer services helpline on 0808 223 1133.
Scams or suspected scams should be reported to Action Fraud.
Savanta surveyed 2,222 UK adults between September 5-7.