Discover What Barclays Says About Online Scams in 2024

Introduction

According to a report published by Barclays, 18% of consumers admitted to being the victim of frauds in the previous year, with an astonishing 93% of these incidents taking place online. This alarming trend underscores the imperative necessity for more stringent preventive measures, as digital platforms continue to serve as a breeding ground for fraudulent activities.

Barclays’ data vividly illustrates that January is the peak month for scam claims, primarily driven by investment schemes. Despite representing a mere 4% of scam incidents, these scams account for 53% of the financial losses reported. Nevertheless, purchase schemes, which constituted the majority of scam reports at 74%, accounted for only 24% of the total monetary value lost. This is a stark contrast. This discrepancy emphasizes the substantial risks associated with investment frauds, as the average claim increased to £15,564, indicating the complexity and severity of these schemes. In addition, the Barclays report illuminates the most prevalent schemes that have been identified by those who have been affected or are aware of others who have been targeted. The list is topped by fake delivery scams, which affect 51% of respondents. HMRC scams and purchase scams are closely followed, underscoring the diverse range of techniques employed by fraudsters and the widespread impact it has.

Consumer awareness of specific scams remains high, with 83% of individuals identifying phony delivery scams and 80% being aware of HMRC scams. Nevertheless, the AI cloning and recruitment scams are less well-known, with only 62% of the surveyed individuals being aware of them. This suggests a public knowledge divide regarding newer forms of fraud.Kirsty

Industry Comments

Adams, an expert in Barclays Fraud and Scams, underscores the ongoing development of scam techniques, particularly on social media platforms, where the majority of them originate. Adams underscores the significance of vigilance, particularly during high-risk periods such as the Christmas and Boxing Day sales. She offers crucial advice for consumer protection, such as refraining from disclosing personal information, such as bank PINs, independently verifying company information, and maintaining a healthy skepticism toward offers that appear too good to be true.

Adams also emphasizes the necessity of a collective effort to counteract scams, urging for more robust cross-industry collaboration as we transition into 2025. This unified approach is considered essential in the fight against the growing menace of scams.

FAQs

What percentage of consumers fall victim to scams, according to Barclays?
Barclays reports that 18% of consumers fell victim to scams in the past year, with an overwhelming 93% of these incidents occurring online.
What types of scams are most common, and which cause the most financial loss?
The most common scams are purchase scams, making up 74% of reported incidents. However, investment scams, while only 4% of the total, account for 53% of the financial losses, with an average claim of £15,564.
What are the key tips for avoiding scams?
Barclays advises consumers to avoid sharing personal details like bank PINs, verify company details independently, and be skeptical of offers that seem too good to be true. Vigilance is especially important during high-risk periods, such as the Christmas and Boxing Day sales.

Conclusion

Barclays’ report highlights the growing concern of online scams, particularly investment fraud, which causes significant financial losses. Despite strong consumer awareness of some scams, newer tactics, such as AI cloning and recruitment scams, require more attention. As fraud methods evolve, collaboration across industries will be key to combating these growing threats and protecting consumers in 2025 and beyond.