Fraud and scam complaints among people aged 18 to 29 increased by almost 10 per cent over the past year, prompting the Financial Ombudsman Service to share five practical tips to help consumers avoid losing money.
The independent service received more than 6,200 fraud and scam complaints from young people in the 12 months to August 31, 2026, accounting for around one in five of all such cases. It received almost 30,000 complaints overall during the same period.
Common scams affecting young consumers
Purchase scams, fake employment opportunities and investment fraud were the most common types affecting younger consumers, with criminals increasingly using social media to promote tempting offers.
Scammers advertised discounted products, hard-to-find goods, rental accommodation and opportunities to earn money from home. Some used fake celebrity endorsements or promised guaranteed investment returns to encourage people to transfer money.
Research commissioned by the Financial Ombudsman found that more than half of young people surveyed had received cold calls from someone pretending to represent a trusted organisation, including banks, broadband providers or the police.
Five ways to protect yourself
The Financial Ombudsman Service has shared the following advice to help consumers avoid purchase, employment and investment fraud.
Pause and question the offer – Be suspicious of pressure to act immediately, unusually low prices, guaranteed investment returns or promises of high pay for very little work.
Research who you are dealing with – Look for independent reviews, check that the business exists and use contact details from its official website rather than relying on information in an advert or message.
Check the offer is genuine – Be cautious about social media adverts, celebrity endorsements and heavily discounted goods. Anyone considering an investment should use the Financial Conduct Authority's Firm Checker to check whether a financial business is authorised.
Pay securely and follow warnings – Avoid transferring money directly to someone you have only met online. Answer your bank's fraud prevention questions honestly and contact your bank using the number on your card if you are unsure about a caller.
Stop if anything feels wrong – Do not send money, invest or share personal information until you have independently checked the offer.
Case studies highlight scam risks
The Financial Ombudsman highlighted the case of a student who responded to a social media advert promising to double his investment. After receiving an initial £15 return, he made further payments but was repeatedly asked to send more money before he could withdraw his supposed profits.
He eventually realised he had been scammed and complained that his bank should have done more to prevent the losses. However, an Ombudsman investigator found that the bank had provided proportionate warnings about the payments and had acted fairly and reasonably.
In a separate cryptocurrency scam, a consumer transferred more than £5,000 through five card payments after responding to an online investment offer. An investigator concluded that the bank should have intervened before the fourth payment and provided a clearer warning. After a deduction to reflect the consumer's failure to carry out checks, the recommended refund was £1,150.
Help for people who have lost money
The Financial Ombudsman Service can investigate complaints about how banks and other financial businesses handled cases involving scams.
Patrick Hurley, Ombudsman Director at the Financial Ombudsman Service, said: "Falling victim to a scam is a devastating experience that no one should have to endure. Fraudsters often hide in plain sight on social media, targeting young people who are looking for work, trying to earn money or simply hoping to buy the latest must-have item or ticket."
He added: "If you do fall victim to a scam, don't panic. Speak to your bank and if you're unhappy with how they handle the issue, bring your complaint to us for a free, fair and final answer."
The service is free to use, although it cannot guarantee that every person who has lost money will receive a refund. Further information about making a complaint is available on the Financial Ombudsman Service website.
