Around nine in ten online adults in the UK have come across content they suspected to be a scam or fraud, new research commissioned by Ofcom reveals.
Nearly half of the participants in the study said they had been personally drawn in by an online scam, while two in five knew someone else who had fallen victim.
A quarter of those who said they’d encountered online scams had lost money as a result – with a fifth being scammed out of £1,000 or more.
More than a third of all victims also reported that the experience had an immediate negative impact on their mental health, increasing to nearly two-thirds among those who had lost money.
Impersonation fraud was the most common type experienced, followed by counterfeit goods scams , investment, pension or ‘get rich quick’ scams and computer software service or ransomware scams
Potential victims were most commonly contacted via a direct message, or a mass message posted to a group
A fifth were reached through online advertisements, while others were targeted through user-generated and influencer posts or videos.
Among those who suffered financial loss from any type of scam, two in five lost between £1 and £99, while one in five lost £1,000 or more. Those who encounter counterfeit goods scams were most likely to have lost money.
Under the Online Safety Bill, which is currently making its way through Parliament, tech firms in scope of the new regulation[5] will be required to assess and take steps to mitigate the risks of harm to users from ‘priority illegal content’.
This will include certain types of fraudulent content. They’ll also have to take steps to mitigate the risk of the platform being used to commit or facilitate fraud.
Larger online services will also have to use systems and processes designed to prevent individuals from encountering fraudulent adverts, and take them down when they become aware of them.
Ofcom will have new powers to ensure platforms comply with their new online safety duties, and will develop Guidance and Codes of Practice to assist their compliance.
Richard Wronka, Ofcom Director, Online Safety Policy, said: “Falling victim to online fraud can have a devastating impact on people’s financial and mental well-being.
“The Online Safety Bill will place new obligations on online services to protect their users against online fraud and scams. Today’s report provides crucial evidence that will help to inform our approach to implementing those new laws when they arrive.”
