An Estimated 6.6 million People in the UK Were Scammed Online in the Last 12 Months

The Online Fraud Charter is an agreement between the government and companies operating within the technology sector to action methods to reduce fraudulent activity on their platforms.

The first of its kind, the Online Fraud Charter was signed by some of the biggest digital corporations, such as Meta, Snap Inc., Microsoft and X (formerly Twitter) to name a few. Each participant agreed to implement steps to protect their customers including:

• Identifying and removing suspicious content
• Updating community guidelines
• Implementing reporting procedures
• Monitoring marketplaces for high-risk goods
• Verifying new advertisers

From when the Charter was published, each organisation was given a 6-month timeline to action their promises. However, with rising fraudulent activity in the past year, and as highlighted by Which?’s findings, it is clear that the Charter’s aims have not been achieved.

Now, consumer groups are hoping that the Online Safety Act, which is yet to be passed, will provide more robust protections. However, with the current enforcement timeline, companies may not be held accountable under the Act until 2027. In the meantime, online users will need to remain diligent.

In a Which? survey, 12% of 2,000 UK adults interviewed said they lost money to online fraud. When scaled to the whole population, that is an estimated £6.6 million last year alone.

74% of those scams happened on a platform that signed the Online Fraud Charter. Of those surveyed, 63% of people were scammed on a social media platform, 42% through search engines, 39% on online marketplaces, and 23% on messaging platforms.

The most common scams are purchase, investment, cryptocurrency, impersonation, employment, and romance scams. Each of these can happen across any online platform. Over recent years, TLW Solicitors’ specialist fraud team have encountered many different types of online scams, all of which fall under the wider umbrella of Authorised Push Payment Fraud (APP) fraud. APP fraud is any type of social engineering to try and trick someone into sending money under false pretences. Whether that be pretending to be a person’s bank, a fake investment company, a bogus employer or selling goods that don’t exist, all APP fraud is intended to make a victim part with their money.

Online scams are becoming more and more advanced, using manipulative tactics that prey on people’s emotions, rushing them into making impulsive decisions. Keep the following tips in mind to protect yourself against online fraud:

• If something seems too good to be true, it often is.
• Don’t allow yourself to be rushed into a financial decision, legitimate financial institutions will never do this.
• All legitimate financial institutions will be on the Financial Conduct Authority (FCA) register, always check if you have never heard of an organisation before. The FCA is a government-run regulatory body overseeing financial service firms and financial markets in the UK.
• If you are unsure about something, get a second opinion from a family member, a friend or professional adviser.
• Always be cautious about unsolicited messages on messaging platforms such as WhatsApp, Snapchat or Instagram.
• Treat email and message links with caution and always use your bank’s official website/app to log in and make transactions/communications.
• Never allow any external software to be downloaded on to your devices, such as screen sharing platforms.

If you have lost money due to an online scam, you should first contact your bank as quickly as possible, where a block can be placed on any transactions that have not gone through. You should also contact the police and Action Fraud. Action Fraud is the national fraud and cyber crime reporting centre for the UK. Reporting what has happened to you could open a criminal investigation, preventing the same thing from happening to someone else in the future.

Your bank should investigate the matter further to determine your eligibility for a refund. However, this isn’t always guaranteed. If you make a claim that is refused or you are offered less that you feel that you are rightly owed, then you can take your case to the Financial Ombudsman Service (FOS). This independent, government-backed organisation settles disputes between financial institutions and their customers.

Sarah Spruce, Legal Director at TLW Solicitors, commented on the Online Fraud Charter and recent fraud figures:

“With 6.6 million people losing money to online scams in the last twelve months, it’s no surprise that many have lost faith in the Online Fraud Charter’s effectiveness. It appears that, until the eagerly awaited Online Safety Act begins to properly hold technology companies accountable, the number of online scams will only continue to increase.

“If you have lost money due to unauthorised transaction fraud, speak to your bank immediately, contact the police and report your case to Action Fraud. If your bank refuses to refund the money you have lost, help is available – contact my team and we can see if you may be eligible to make a ‘no-win, no-fee’ compensation claim. Don’t feel ashamed or embarrassed about being scammed. As these latest figures clearly demonstrate, scams can happen to anyone.”