A new study has found that young adults are nearly three times more likely to be targeted by scammers than their grandparents
Younger Brits have long believed their grandparents were most susceptible to online fraud, but new research has revealed that tech-savvy young adults are prime targets for digital scammers. A study of 3,000 UK adults, commissioned by insurer SquareTrade, discovered that 61% of 25-to-34-year-olds and 59% of 18-to-24-year-olds were personally targeted by a scam — nearly triple the 20% rate reported by those aged over 65.
Social media platforms and messaging apps are a key gateway for fraudsters, accounting for 41% of scam encounters amongst under-25s, compared to just 7% via email. Platforms such as Instagram and TikTok were responsible for 11% of approaches each, with fake giveaways, fraudulent influencer promotions and gaming scams posing the greatest dangers.
Amongst 25-to-34-year-olds who fell victim, 21% were caught out by fake investment schemes — including fraudulent cryptocurrency, trading and NFT opportunities — costing victims an average of £414 per incident.
“Fraud in this country is evolving fast,” said Alex Wood a reformed scammer turned counter-fraud advisor. “Social media has given criminals a direct line into the lives of millions of young people, and AI is making every scam more convincing, more personalised, and harder to identify.
“Fake investment schemes can now be generated in minutes. Phishing messages are flawless. Voice clones are good enough to fool your own family.
“This is not a niche problem – it is a crisis that is scaling by the month, and the people being hit hardest are the ones everyone assumed were safe.”
The emergence of artificial intelligence has also dramatically heightened the risk of falling victim to scams. Nearly half (49%) of those surveyed felt AI made scams far more convincing, while 38% believed defensive tools were failing to keep pace with advancing technology.
One in five (20%) young adults aged 18 to 24 had already come across scam deepfake videos, and 12% received AI-generated voice calls mimicking people they knew. Worryingly, 26% confessed they would find it difficult to tell apart a genuine video call from a deepfake.
The study also found phone theft can leave victims vulnerable long after their handset had been stolen. Amongst Britons whose accounts were breached, 32% could link it back to a stolen smartphone that gave fraudsters access to banking and social media apps.
The research, carried out by OnePoll, also revealed a surge in money muling, where criminals pay people to let money pass through their bank accounts. Over 42% of 18-to-24-year-olds were approached for this arrangement, and 6% admitted taking part.
Sadly, despite being targeted by sophisticated tactics, 42% of victims blamed themselves for being duped. Among 25-to-34-year-olds, 34% felt embarrassed or naïve, leading 18% to keep quiet about what happened. Interestingly, 10% of 18-to-24-year-olds chose to confide in an AI chatbot about the experience rather than seeking human help.
Aditya Hindocha, vice president of strategic partnerships at SquareTrade Europe, added: “The UK is one of Europe’s most tech-forward markets, but the risks facing consumers are evolving just as quickly.
“It’s concerning to see how wide the protection gap is becoming, particularly for younger people whose finances, identities and day-to-day lives are increasingly managed online.
“Consumers shouldn’t feel they have to tackle these risks alone, and greater awareness is vital if people are to stay protected in an increasingly complex digital world.”
Protecting Yourself: 5 Tips from a Reformed Scammer
1. Don’t be fooled by a familiar face – Even convincing celebrity endorsements or influencer recommendations can be fake, so always research investment opportunities independently before parting with cash.
2. Put suspicious video calls to the test – If something feels off, ask the person to hold three fingers up in front of their face, as deepfake technology can still struggle with sudden movements.
3. Treat unexpected messages with caution – Even messages from friends’ accounts can be sent by fraudsters, so verify any requests for money, investments or personal information elsewhere.
4. Slow down when someone creates urgency – Scammers rely on panic and pressure, so take a moment to independently verify any unexpected request involving money or sensitive details.
5. Never let someone use your account to move money – Receiving and transferring cash on someone else’s behalf could make you a money mule, potentially putting your finances and reputation at risk.