Young people are increasingly falling victim to online scams, often after seeking financial advice and investment opportunities on social media.
Recent data from UK Finance shows that in 2022, there were almost 3mn fraud cases in the UK, worth more than £1.2bn. Almost 80 per cent of those scams started online.
Research from Visa has found that young people aged 18-34 were twice as likely to fall victim to online scams than those aged over 55. With the rise of artificial intelligence, we expect to see an increase in scams as criminals devise sophisticated new tactics.
Against a backdrop of high inflation and spiralling costs of living, it is essential to equip young people with the skills and appropriate behaviours to make informed financial decisions, spot scams and avoid the pitfalls.
While it is encouraging to see young people engaging with financial resources online, there is growing concern around how credible those sources are.
Unfortunately, fraudsters are well aware of young people’s level of comfort with the online environment and are all too willing to exploit this.
TikTok, Instagram, Twitter and many other social media platforms are used as vehicles for a wide range of scams, from get-rich-quick schemes to sophisticated ways of stealing your identity.
These schemes can sometimes appear to be supported by recognised celebrities or influencers. In some cases that is true, but in many these endorsements have been faked.
In other cases, the ‘expert’ giving the financial advice is anything but.
A very popular area for scams is currently in relation to charity fraud, particularly following disasters such as the Turkey/Syria earthquake.
These are widely promoted, sometimes appearing to be endorsed by trusted individuals, and even replicating legitimate charities' websites so that donated funds are actually being paid directly to criminals.
Another common scam is fake brand collaboration requests, which come from people who appear to be working on behalf of brands offering paid work. The majority these ‘DM to collab’ offers are fake, designed to trick users into buying products that do not exist.
Things to look out for
Since scammers regularly adopt new tactics, educators, parents and guardians must work together to make sure the financial education that young people receive is current and resonates with them.
Using real scams that can be found on websites such as Action Fraud are a great way to help young people understand.
At Young Enterprise we believe the ability of young people to apply their learning across all subject areas in practical situations is crucial, and there are plenty of practical steps that young people can take to protect themselves.
Every time people share information online it comes with risk, and it is important to exercise caution when making financial transactions or personal data exchanges.
Following the news agenda helps people to be aware of the very latest scams and techniques. We encourage everyone to share these stories with their peers.
