The number of scams has soared year-to-date, with over 70% of UK consumers targeted by fraudsters over the last three months, according to the Financial Conduct Authority (FCA).
The cost of living crisis was identified as the main driver behind the rise in scammer activity, as desperation made easy prey out of vulnerable people.
FCA director Sarah Pritchard labelled financial con artists as a “complex and ever-evolving enemy” at the Financial Crime Summit, and called on all sectors of society to fight together.
The FCA noted a slate of scams linked to cost of living relief, with prevalent frauds including false access to rebates from utilities firms.
The Financial Ombudsman Service (FOS) reported a spike in scam complaints between April and July this year, with a significant chunk linked to cryptocurrency schemes.
“It is a depressing fact that the more vulnerable people become, the more active financial fraudsters are. We saw this during the worst of the Covid pandemic, and with inflation surging we are seeing it again during the cost-of-living crisis,” said AJ Bell head of retirement policy Tom Selby.
“Scammers often use sophisticated techniques to swindle people out of their savings, with cryptocurrency ‘investments’ offering huge potential returns increasingly used to tempt people to part with their cash.”
“These investments often end up being a Ponzi Scheme, or entirely fictitious, with those who hand over their money risking losing everything.”
Scammers are becoming more sophisticated, and are using the cost of living crisis to steal from the most vulnerable and at risk members of society across the country.
“While people of all ages can fall victim to scammers, those who are able to access their retirement pot – potentially the biggest asset they own – will inevitably be a prime target,” said Selby.
“Huge efforts continue to be made to protect people from thieves, but ultimately the surest way to avoid becoming a scam victim is to know the tricks they use and not hand over your money in the first place.”