Financial Ombudsman Service warns young people to stay alert to online scams
The Financial Ombudsman Service is urging young people to be vigilant against online scams after receiving more than 6,200 fraud and scam complaints from 18 to 29-year-olds over the past year. The figure represents around one in five of all fraud and scam complaints received by the service.
The warning comes as the Financial Ombudsman Service continues its Free. Fair. Final. campaign, helping consumers understand where they can turn when things go wrong with a financial service and they remain unhappy with how their complaint has been handled.
Research commissioned by the service found that more than half of young people surveyed had received a cold call from someone pretending to represent a trusted organisation such as a bank, telecommunications provider or the police. These approaches are often linked to wider fraud and scam activity that begins online or through social media.
The scams affecting young people
Analysis by the Financial Ombudsman Service found that purchase scams, employment scams and investment scams were among the most common frauds affecting younger consumers.
Many of these scams begin on social media platforms, where criminals promote:
- Fake employment opportunities offering easy money or flexible work.
- Discounted or hard-to-find products.
- Fraudulent investment opportunities promising guaranteed returns.
- Cryptocurrency schemes using fake endorsements and fabricated success stories.
The service says scammers frequently exploit financial pressures, a desire to find work or the appeal of exclusive products and opportunities.
A free, fair and final answer
The Financial Ombudsman Service was set up by Parliament to resolve disputes between consumers and financial businesses. It provides a free and impartial service and can investigate complaints where consumers believe a financial firm has not treated them fairly. This includes complaints involving fraud and scams.
Around half of the Ombudsman's fraud and scam caseload relates to Authorised Push Payment (APP) fraud, where people are manipulated into sending money directly to criminals. Other complaints involve card payments made to criminals or disputes about how financial firms responded when a customer reported a scam. Importantly, the service can consider whether a financial business acted fairly and reasonably when responding to a scam, helping consumers seek an independent review if they remain dissatisfied after complaining to their provider.
Raising awareness before people need help
The Financial Ombudsman Service says awareness of the support available remains low among younger consumers, with only around a quarter knowing that the organisation could potentially help in cases involving fraud and scams.
Patrick Hurley, Ombudsman Director at the Financial Ombudsman Service, warned that criminals often hide in plain sight online, targeting young people looking for work, trying to earn extra money or attempting to buy sought-after items. He encouraged consumers to be sceptical of offers that appear too good to be true and to take time to stop, question and research before making payments or sharing personal information.
He also emphasised that people who become a victim to a scam should contact their bank immediately and, if they are unhappy with how their bank handles the matter, consider bringing their complaint to the Financial Ombudsman Service for a free, fair and final answer.
Five ways to stay protected
As part of its awareness work, the Financial Ombudsman Service recommends:
- Pause and question offers that seem unusually attractive.
- Research the organisation or individual you're dealing with.
- Verify that offers, advertisements and investment opportunities are genuine.
- Follow warnings from your bank and use secure payment methods.
- Stop and seek independent advice if something doesn't feel right.
Find out more
The Free. Fair. Final. campaign aims to build awareness of the Financial Ombudsman Service before consumers need it, helping more people understand where they can turn when disputes with financial firms remain unresolved.
For more information on how the Financial Ombudsman Service can help with unresolved complaints involving fraud, scams and other financial matters, visit www.financial-ombudsman.org.uk/free-fair-final