Research by the Office of Fair Trading has revealed that 3.2 million adults in the UK fall victim to a scam every year. Scams cost the UK consumer an estimated £3.5 billion per annum.

The study into the prevalence of mass marketed scams in the UK provides the first ever detailed analysis of the financial impact and harm caused by such scams. The survey found that nearly half of the UK adult population has been targeted by a scam and that every year one in 15 people in the UK fall victim to a scam involving deceptive unsolicited mailings, phone calls, or emails. The average amount lost per scam was £850.

The survey, involving over 11,200 interviews, included mass marketed scams such as premium rate telephone prize scams, prize draw and sweepstake scams, pyramid selling and chain letter scams, bogus holiday clubs, foreign lottery scams, work at home and business opportunity scams, miracle health scams, fake loan scams, property investor scams, clairvoyant mailing scams and high risk investment scams.

In total, consumers lose around £1.2 billion every year to bogus holiday clubs, £490 million to high risk investment scams, £420 million to pyramid and get-rich-quick schemes, and £260 million to fake foreign lotteries.

On average a victim has a 30% chance of falling for another scam within a year of first being caught out, most likely because their personal details are added to a so-called 'suckers list', which are then sold on to other scammers.

The research also shows that whilst older consumers were more likely to be targeted by a scam, the highest percentage of victims was aged between 35-44 years. Of those who fell for a scam, 32% said it was because of the legitimate and professional appearance of the marketing, 30% said they were caught off guard, and 13% because of the excitement at the prospect of getting a good deal or winning a prize.

And although men and women are equally likely to be victims of scams, women are more likely to fall victim to miracle health scams (71% of overall victims), clairvoyant mailings (70%), and career opportunity scams (63%), while men are more likely to lose money to investment scams (72% of all victims), property investor scams (68%) and advance fee scams (65%).

£3.5 billion stolen from the public

Less than 5% of those scammed reported their experience to the authorities, and more than half of victims have since changed their shopping behaviour, for example by becoming less likely to respond to any unsolicited offers or shop on the internet.

The OFT advice to consumers is: stop, think and be sceptical. Mike Haley, Head of Scambusters at the OFT, said: "This research shows for the first time the full extent of damage done to individuals and to the wider UK economy by manipulative and malicious scams. The £3.5 billion stolen from the public, which will line the pockets of scammers this Christmas, equates to about £70 per year for each adult living in the UK."

Links

• Over 3m UK adults fall victim to a scam every year (direct.gov.uk)