Written by Roismi Rajakumar, young person, December 2024
In today’s digital world, young people are increasingly targeted by scams, especially through social media ads and fake job offers. It’s crucial to stay alert to prevent falling victim to fraud and protect your hard-earned money. This guide will explore common scams, real-world examples, and tips on how to avoid them as a young person.
Top financial scams impacting young people
Holidays that turn into financial nightmares
A "free holiday" sounds amazing, right? But scams offering all-expenses-paid trips often have hidden traps, especially when it comes to money. Scammers might promise a luxurious getaway in exchange for a large upfront fee or the purchase of expensive holiday packages that ultimately don’t exist. According to Action Fraud, scammers may even use fake listings on trusted platforms like Airbnb to make their offers appear legitimate. What starts as an exciting opportunity can, thus, quickly turn into a financial nightmare when you’re asked to pay for something that isn’t real. Young people, often eager to explore new experiences, are prime targets for these scams. New research shows that 18-35-year-olds are 20 times more likely to fall victim to holiday scams in comparison to those over the age of 55, leaving young people hugely at risk. The financial fallout can be devastating too, with some young people losing significant amounts of money.
Money mules and fake job offers
A money mule is someone who is recruited by fraudsters to transfer stolen or illegally obtained money between accounts. It’s a criminal offence, and fraudsters commonly prey on young people, luring them in with fake job opportunities or “get rich quick” schemes that promise easy money for minimal effort. The money mule scam often involves receiving payments into your bank account and transferring them elsewhere. However, the money is usually stolen or tied to illegal activities, such as money laundering. In 2021, a North Wales case saw young individuals unknowingly caught in a money mule scam. They were promised easy earnings, only to face criminal charges when authorities discovered the fraudulent activities. More than 19,000 money mule scam cases were recorded in the first half of 2024, with people in their 20s most likely to be caught up in it.
Online shopping scams
Online shopping scams are another common fraud targeting young people, often linked to fake websites or social media ads offering products at incredibly low prices. These scams typically promise brand-name items at a fraction of the cost, only to leave buyers out of pocket or receive counterfeit products that don't match the description. In 2023, Action Fraud reported a surge in complaints from young people – namely students – falling victim to online shopping fraud, particularly when purchasing tech gadgets or clothing. Scammers typically create fake online stores or hijack well-known brands to attract buyers and steal both their money and personal information.
How to spot a scam
It’s not always easy to tell when something is a scam, but here are a few red flags:
- Unrealistic promises: Scammers offer something too good to be true, like a free holiday or a job with high pay for little effort.
- Urgency: Scammers typically rush you into making big or life-changing decisions with false deadlines.
- Unverifiable contact: If an unknown company or person reaches out to you and is hard to verify by a simple Google search, be cautious.
- Suspicious payment requests: Never send money upfront for something you haven’t received.
According to UK Finance, scams targeting young people continue to rise, with online fraud making up a significant portion of the total losses.
How to protect your money online
Banking and shopping online are part of everyday life, but it's essential to use online services safely. Here are some tips to protect your money:
- Avoid suspicious links: Don’t assume all links and websites are genuine. One piece of advice: if something looks off, it probably is. For example, if a link is made up of a random selection of letters and numbers or the wording in it doesn’t match what you’re intending to access, don’t click it.
- Keep your personal information private: Never share your bank details or passwords unless you’re sure it’s secure.
- Enable two-factor authentication (2FA): 2FA is an extra layer of security that requires you to provide two forms of identification before accessing your online banking or shopping account. This could include a combination of a password, memorable word or even and a single-use access code sent via text message to your phone.
How to report financial fraud: Action Fraud UK
If you think you've fallen victim to a scam, it’s important to report it immediately. Action Fraud UK is the national fraud and cybercrime reporting centre. Reportedly receiving over 400,000 fraud reports in 2022, the faster you report it, the more likely authorities can intervene and prevent others from falling victim. To report fraud, visit Action Fraud or call 0300 123 2040.
Conclusion
Financial fraud targeting young people continues to rise, with scams taking many forms. UK Finance reported that £1.2 billion was lost to fraud in 2022 and, unfortunately, many young people were caught up in these scams. However, all is not lost! The key to staying scam-free is to stay alert. Always check any information you receive carefully, never rush into decisions, and report suspicious activity to Action Fraud UK. Protect your hard-earned money and keep yourself safe from fraudsters!