The Annual Cost of UK Fraud Has Escalated Even Further During the Pandemic

It’s no secret that fraud is everywhere. In 2021, the cost of fraud is expected to the annual cost of UK economy up to £137 billion due to this problem and criminals are capitalizing on this chance to make a profit from their unsuspecting victims. 

Without organizations using dark web monitoring tools to help stop online fraud – don’t be surprised when consumers start losing money from fraudulent schemes from clever hackers.

It’s estimated that the daily cost of fraud (£375,342,465)  is equivalent to the total of over 136 million cups of coffee and over 834,112 Playstation 5’s, and you read more about the daily cost of UK fraud at skurio.com/the-cost-of-fraud/

A rise in Fraud Due to Covid-19

The COVID-19 pandemic had a significant impact on the UK’s online sales. The surge in transactions during this period created an increased fraud rate, which is why businesses need to take precautions before purchasing from international sources or using debit cards for payments.

COVID-19 brought a new crisis to the UK. The latest pandemic created fertile ground for fraudsters who are now armed with a powerful weapon – social media platforms. 

These platforms profit by targeting ads towards their most vulnerable customers, namely users of these sites who provide personal information in exchange for free content or services offered on them such as customised news feeds populated only with what you want and sell your data.

What are the Psychological Impacts of Fraud on Consumers?

Fraud victims are less likely to take immediate action or seek revenge on their aggressors, but they are more likely to experience mental health impacts such as anxiety and depression.

Fraud victims often report feeling embarrassment, disillusionment and resentment, and this can lead to significant emotional responses. 

Consumers are also more likely to suffer the loss of confidence and feelings of powerlessness, vulnerability and injustice. They may spend beyond their means to cope with the emotional impact of fraud. The emotional impact can be long-lasting and devastating, and in some cases lead to suicide.

The Types of Scams You Can Expect

Scams are everywhere, it’s difficult to avoid them – but avoiding them altogether is necessary if you don’t want to get scammed. Some of the following ways of scamming are continuously increasing in the digital Market.

1. Free Apps

One type of scam that has become prominent in the digital market, is that of ‘free’ apps. It used to be that people got something for paying for software, such as upgrades and better functionalities, but now this has changed drastically.

Almost all free apps are adware, which means that you’re getting nothing for free – instead, your device gets constantly bombarded with advertisements that cannot be removed.   

2. Bait and Switch

Another big scam in the digital market is ‘bait and switch’. This type of scam actually has nothing to do with the product itself, but rather how it’s presented – it’s when ads or promotional materials make something appear different than what it actually is. 

Thus, if you see an ad for a free app and you download and install it – and find out the app is adware, then your device was bait and you got scammed.

3. Unauthorised Data Collection

Another big scam that has emerged in the digital market is unauthorised data collection. 

This type of scam basically reveals that what companies claim when they say that they care about their customers (and privacy), such as Facebook,  is nothing more than an act. Most likely, if you download any free app, it will collect your personal data and send it to the company’s servers without you knowing or authorising this.

To avoid getting scammed when buying digital products, make sure that what you get for free is actually worth downloading – check reviews etc. Also, check what you’re getting for the price – is it a functional product or just free adware?

Conclusion

In the past, fraudulent behaviour has been seen many times. Many fraudsters are skilled at creating a convincing facade that can leave their victims feeling duped and resentful. 

It is a very common scam that will cost you money and time in order to get back at least some of what was lost from this fraud attempt – if not all! 

The act itself can be damaging because when consumers struggle or fall behind with payments on their bills due to these schemes then it affects everyone else around them too by creating more noise for society’s already heavily burdened infrastructure.