5 of the most common frauds targeting young people

In the UK, fraud targeting young people is on the rise, with social media often leveraged as the conduit for fraudsters to operate. According to Action Fraud, young people aged 11 to 29 in the UK reported almost 69,000 cases of fraud with losses totaling £143.7 million in 2023 alone. Here are some of the most prevalent scams targeting this demographic:

Investment Fraud - losses totalling £29,509,631 

These scams are particularly effective among Gen Z and young millennials who may be drawn to the high-risk, high-reward appeal of cryptocurrency. In 2023, fake investment schemes accounted for nearly half of all social media-related monetary losses. Young investors report being scammed on “investment” apps that appear legitimate but are designed to steal funds.

Online Shopping Scams - losses totalling £9,19,951

Young consumers are frequent online shoppers and often fall victim to counterfeit or undelivered goods. Scammers exploit social media ads to lure young shoppers to fake websites where they sell knockoff items or nonexistent products. While these scams remain one of the most widely reported, many young people hesitate to report them due to embarrassment, leading to significant unreported losses.

Rental Fraud - losses totalling £4,270,255 

Fraudsters exploit the need for student accommodation by advertising fake rental properties, demanding deposits before any property viewings. Victims not only lose their money but often the opportunity to secure property in time for the academic year.

Ticket Scams  - losses totalling £1,053,493 

Targeting students seeking discounted tickets for high-demand events generated over £1 million for criminals in 2023, as they left victims out-of-pocket and out of the events and experiences as fraudsters sold fake tickets for events that victims could never attend.

Fake Jobs and ‘Gig’ economy scams - losses totalling £149,719 

Many students and young professionals searching for flexible jobs fall prey to fake job offers. These scams often require victims to submit personal information, which can lead to identity theft. Scammers often ask for upfront fees under the guise of consultations or assistance, never delivering any real employment opportunities.

Recent Fraud Trends and Statistics 

Fraud cost UK consumers £1.17 billion in 2023, a 4% decrease from the previous year, thanks to initiatives like the Take Five to Stop Fraud campaign from UK Finance. Additionally, measures like the recent Mandatory Reimbursement regulations ensure that victims of APP scams are reimbursed. However, younger users remain particularly vulnerable due to high social media usage and a propensity to trust online advertisements and communications.

How as a 'Techco' we're helping to stop fraud.

As well as our outreach work with educators, JT’s Mobile Intelligence division collaborates with the UK's banking sector and Mobile Network Operators to bring innovative fraud prevention services to the market that make smart use of the wealth of data available from mobile operators. Our solutions integrate directly into the workflows of banks and fintechs, helping them to detect and stop fraud in real-time. To find out more about our Mobile Intelligence Solutions contact our team today.