Nearly one-fifth of consumers have experienced card fraud

Nearly one-fifth of consumers have experienced credit or debit card fraud with an increase of fraudulent activity being reported during the pandemic, according to research by Lowell.

The research showed that despite nearly three-quarters of consumers (74%) believing that they would not give out any details to someone claiming to be from their bank, nearly one fifth (18%) of consumers have still experienced credit or debit card fraud.

The research also found that 15% of consumers would be likely to click through a text link if they were contacted by someone claiming to be their bank, and 15% of consumers claimed they would not do any checks to guarantee a call from their bank was legitimate.

Fraudulent activity is taking place throughout the UK and the ways in which consumers are being targeted is constantly changing. Fraud committed using a debit or credit card has impacted the most people, with nearly one fifth (18%) of consumers having had an experience with it.

Other common types of fraud that affect nearly one in ten consumers include internet banking fraud (9%) and text fraud (8%). In addition to this, one in twenty consumers have experienced mobile banking fraud (6%) and cash machine fraud (5%).

The statistics show that the most common age group targeted by fraudulent activity are 16–24-year-olds, with 62% of young people saying they have experienced some form of fraud. Research reveals that Cardiff is the most common place to experience fraud in the UK, with 51% of people reporting that they have had an experience with fraud, closely followed by Birmingham at 50%.

In contrast, only 15% of people from Southampton reported they had experienced fraud making it the best city in the UK to avoid fraudulent scams.

With reports of fraud being an ongoing issue across the UK, it is key that consumers know how to spot a scam and a great way of avoiding fraud is to be aware of it.

Research revealed that over two fifths (42%) of consumers use official banking and financial websites to find out about potential fraudulent risks; whereas nearly a third of consumers prefer to use social media (29%) or find out through their family and friends (28%).

Commenting on the findings, John Pears, CEO of Lowell, said “It’s concerning to see how many people have been affected by fraudulent activity, and the variety of different techniques that people are being targeted with. It really goes to show that the sophistication with which these cyber criminals operate is increasing all the time – and we all need to be vigilant when it comes to protecting ourselves and vulnerable family members online.”

“At Lowell, we want to raise awareness around potential fraudulent risks, to help people understand how they can protect themselves and avoid falling victim to fraudsters.”