As universities across the UK kick off Freshers Week, Barclays’ latest Scams Bulletin reveals an alarming trend of scammers targeting students and young people. The report highlights the increasing prevalence of purchase scams and the misunderstanding surrounding money mule activities among the 18-24 age group.
According to the report, purchase scams dominate the landscape, accounting for 76% of scam claims from young adults. Many of these scams originate on social media platforms, with 71% of claims in this age group linked to social media-related activities. There was an 11.6% rise in scam claims during April 2024, coinciding with the arrival of student finance payments.
Neil Scriven, Fraud Director at Barclays, commented: “Students are commonly targeted by criminals seeking to take advantage of young people managing money for the first time.” He emphasized the seriousness of being involved in money mule activities, which can have long-term impacts on a person’s financial stability and legal record.
A significant knowledge gap was also found among young adults, with 68% of students unaware that engaging in money laundering could result in a criminal record, and 79% unaware that such actions could lead to imprisonment. With 66% of young people noticing an increase in scammer activity on social media platforms over the past year, many feel unsafe, and 73% are calling for tech companies to take stronger action against scammers.
Kirsty Adams, Fraud & Scams Expert at Barclays, noted, “Social media is the number one way scammers target victims of all ages, but young people are particularly vulnerable.” While younger consumers typically report lower average losses (£701) compared to older groups (£2,914), the scale of scam targeting among students remains concerning.
Barclays urges students to be vigilant, verify all online purchases, and manage their finances responsibly to avoid becoming victims of fraud during this vulnerable period of Freshers Week.
