Nationwide, Santander, Natwest and Lloyds customers given £757 alert | Personal Finance | Finance
A staggering 70% of UK consumers have been targeted by scam messages, seemingly from trusted sources such as delivery companies, banks or government bodies, a survey has revealed today.
More than half (56%) of those targeted believe that artificial intelligence was used in the scam attempts, such as fake voices or images, according to the poll conducted by information and insights firm TransUnion.
A worrying 9% have lost money to scams impersonating brands, with 2% still clueless about how the fraudsters managed it. More than one in ten victims (11%) lost at least £1,000.
The scammers targeted consumers with official-looking communications from banks, including Natwest, Lloyds, Nationwide, and Santander, causing an average loss of £757.64. Younger consumers seem to be more vulnerable as they are more likely to rely on mobile messaging, with 13% of 25—to 34-year-olds and 11% of 18—to 24-year-olds losing money to scams.
The most impersonated brands in the UK are Royal Mail – with 40% of UK adults saying they have received a fake message from fraudsters claiming to be from the firm – and Evri – with 38% reporting a similar message from the courier. Delivery fraud – where consumers are notified about a fictitious upcoming or missed parcel delivery – remains the most common tactic for fraudsters.
TransUnion chief executive Madhu Kejriwal warned: “As fraudsters exploit artificial intelligence, scams are becoming more sophisticated and harder for consumers to spot due to their sheer volume, accuracy and tone.”
“These scams don’t just look real, they feel real. Whether it’s a delivery text arriving just when you’re expecting a parcel, or an email that looks like it’s from your bank, it’s more important than ever that consumers stay vigilant.”
Chad Reimers, general manager of identity and fraud at TransUnion in the UK and Europe, said: “Consumers should be aware that even if a relatively small sum of money has been lost, it may just be the first phase of the fraudster’s objective.
“In some instances, once fraudsters have access to personal details or login credentials, they will look to ‘take over the account’ leading to further financial withdrawals, applying for additional credit lines and in some cases may even coach or coerce witting or unwitting money mules to shift funds quickly through accounts to launder their ill-gotten gains.
“It is, therefore, important that consumers stay vigilant and immediately report suspicious activity, especially in situations where they suspect their details have been compromised, and not just when money has been taken.”
The research emerges as financial technology platform Adyen disclosed that UK shoppers hit by fraud have lost an average of £757.64 over the past 12 months.
The company revealed the UK witnessed a staggering 144% spike in the value of money stolen per shopper during the past year, ranking second only to Canada. Adyen has discovered that consumers are increasingly concerned about the impact of artificial intelligence (AI) on fraudulent activities.
Nearly a third (29%) expressed worries about an increased risk of fraud and scams.
Brigette Korney, global head of risk and fraud prevention at Adyen, commented: “With AI, fraud is a lot harder to detect, because those AI models are able to really replicate what a human would write or say.
“Social engineering kits now write flawless emails, texts and even clone brand sites. Stolen credentials are fed straight into mobile wallets, bypassing many legacy checks. AI-authored lures such as texts or emails are no longer riddled with spelling mistakes; they read like brand-approved marketing copy and are arriving at industrial scale.
“As AI technology is constantly evolving, educating shoppers about its potential impact on fraudulent activities is crucial, especially considering the varying levels of tech-savviness among customers.”
YouGov conducted a survey of 2,180 UK adults for TransUnion in June.
