Nine in 10 people have encountered online scams: how to protect yourself against fraudsters

Nine in 10 people have encountered scams or fraud online and nearly half have been drawn into engaging with scams, according to Ofcom.

The regulator's new report looked at internet users’ attitudes and perceptions towards online fraud and scams.

Read on to learn about the key findings and for advice on how to protect yourself against scammers. 

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Key findings from Ofcom's fraud report

Ofcom conducted an online survey of 2,097 UK residents in May 2022 and interviewed 32 victims of online scams or fraud between October and November 2022. 

It found that:

• Nearly nine in 10 adult internet users have encountered content online which they believed to be a scam or fraud.
• Nearly half of adult internet users have personally been drawn into engaging in an online scam or fraud, while four in 10 knew someone who had fallen victim.
• A quarter of those who said they’d encountered online scams lost money as a result, with a fifth being scammed out of £1,000 or more.
• Three in 10 experienced a potential scam or fraud via email, just under a quarter via social media and just under a fifth through websites and apps.

The victims interviewed by Ofcom most commonly reported impersonation fraud, followed by counterfeit goods scams, investment, pension or ‘get rich quick’ scams and computer software service fraud (also known as remote access scams) or ransomware scams.

Ofcom's interviews identified four stages of a typical scam.

1. Engagement phase: where there was direct (eg a message sent through social media platforms) or indirect (eg a link to fake website sent via social media platform) communication from the scammer to the victim.
2. The hook: where the scammer offered a clear benefit to the victim such as the opportunity to make money or make a connection.
3. Engagement techniques: used by the scammer to impair the rational decision-making process. Techniques included constant contact and messaging victims, telling hardship tales, promising victims a return on their initial investment, being charming, or emphasising time sensitivity. 
4. Financial transaction: where the victim gives the scammer their money. 

Rocio Concha, Which? director of policy and advocacy, says: 'This research exposes the frightening scale of online fraud and backs up recent Which? research that found a slew of misleading and potentially fraudulent investment adverts are still targeting Facebook and Instagram users.

'The Online Safety Bill has been going through Parliament for a year and progress has been much too slow, with people still being scammed every day. The government must take a crucial step in the fight against fraud by ensuring the Bill includes the strongest-possible protections for consumers and is passed into law without further delays.'

Scammers take advantage of vulnerability

Ofcom's findings mirror a report Which? published earlier this year, which highlighted how scammers often have greater success if the victim is going through a vulnerable period in their life, for example suffering from acute stress or serious emotional strain.

Victims shared stories of scammers using imitation to appear more believable, through tactics such as spoofing phone numbers or using fake reviews to create credible online ads. 

Too often, banks and the police don’t deal with the situation well, leaving the victim in a further state of stress. On many occasions, the victim isn't reimbursed for their losses.

Find out more: the psychology of scams – a Which? report 

Under-reporting of scams and fraud

Victims are urged to report scams and fraud to their banks (if they've lost money) and Action Fraud (the fraud and cybercrime reporting centre). 

These reports allow the police to build a clearer picture of how victims are being targeted, but too few victims are submitting them.

In September last year, we highlighted how fraud victims lack faith in authorities. Only a quarter of people we surveyed said they contacted Action Fraud with most victims telling us they didn’t know this was an option or didn’t think Action Fraud would do anything about it. Many didn't tell their banks either, typically because they didn’t think the bank would do anything about it, or they felt too embarrassed to report it. 

Ofcom found that just under two in 10 survey respondents who encountered a potential scam or fraud online did not take any action – due to uncertainty around the outcome, not knowing who to tell or not being directly impacted.

Find out more: the impact of fraud on mental health

Protect yourself against online scams

Ofcom provides the following tips to stay safe when you're browsing the internet:

• Wait - is it too good to be true? Often, fraudsters will tempt you in with goods or offers that seem better than anything you’ll find elsewhere. It’s this temptation of a bargain or a great deal that could lure a potential victim. If you’re offered a deal that sounds too good to be true, be extra vigilant and double-check that it’s legitimate.
• Double-check their identity Confirm the identity of the person or organisation you’re dealing with, especially if they’ve contacted you out of the blue. Take time to find out more about who you’re in contact with: can you confirm whether they represent a certain company or organisation? You can search for information on the Financial Conduct Authority's website.
• Don’t give out personal information In some cases, online fraudsters don’t want you to hand over money straight away. Instead, they want you to provide your personal or financial information. If they have access to these details, they’ll be able to use your identity fraudulently or can use your financial information to get access to your money via your bank or building society account. 
• Don’t trust unknown attachments or links Sometimes fraudsters can get hold of your personal or financial information without your knowledge. They can do this by sending you attachments or links via email or text message. These can contain malware - malicious software that can allow them to get access to your device. Don’t click on any attachments or links that you can’t verify, especially if you haven’t been able to confirm the sender’s identity. 
• Use a protected payment method If you’re paying for something, don’t transfer money directly. Instead, use a verified money transfer or online payment service, or make a transaction using your bank or building society account, which will require the person you're paying to provide their details. Most credit card providers protect online purchases and are obliged to refund you in certain circumstances. If you’re unsure whether a payment or transfer service offers this sort of protection, contact them to find out before you go any further. Action Fraud provides more information on this.
• Report it immediately If you think you’ve fallen victim to online fraud, report it straight away. Tell your bank or building society (or online payment or transfer service if you’ve used one of those), as it might be able to stop a payment being made if you report it quickly enough. Or, it might be able to recoup some or all the money you’ve lost. 

Find out more: how to report scams