Barclays Scams Bulletin ‘Student Special’: Seven in 10 young people unaware money muling could result in criminal record

• As freshers week kicks off across the UK, the latest Barclays Scams Bulletin reveals how scammers are targeting students and young people
• Purchase scams are the top scam type reported, making up 76 per cent of scam claims for those aged 18-24, while 71 per cent of this group’s claims originate on social media
• 73 per cent want tech platforms to take action to improve online safety as 66 per cent have seen an increase in social media scammers in the past 12 months
• 68 per cent of young people are not aware that acting as a money mule could result in a criminal record
• The Barclays Scams Bulletin tracks scam data across all personal and business current accounts, paired with expert commentary from Barclays digital safety experts

The latest Barclays Scams Bulletin reveals how students and young people are a key target for scammers – as new research reveals 83 per cent of those aged 18-24 have been targeted by a scam or know someone who has. The Bank is sharing tips and advice to help students stay vigilant as they head off to university later this month.

1.      Money Mule misunderstanding

• 68 per cent unaware money muling could result in a criminal record
• 23 per cent would not tell someone if they unwittingly became a money mule, due to shame or embarrassment

Barclays research shows most young people are unaware that acting as a money mule could result in a criminal record (68 per cent), and even imprisonment (79 per cent). A quarter (23 per cent) also say that a sense of shame or embarrassment would stop them from telling someone, if they unwittingly became a money mule.

“Mule herders” – people that recruit money mules – often target younger people via social media and take advantage of this misunderstanding. Surprise money transfers, requests to move funds or online contacts asking about finances should all set alarm bells ringing.

Neil Scriven, Fraud Director at Barclays says: “Students are commonly targeted by criminals, seeking to take advantage of young people managing money for the first time. Being asked to move money could seem like an innocent request, particularly if it’s coming from someone you trust or if you’re provided with what seems like a genuine excuse. Acting as a money mule is a serious crime that can have a long term detrimental effect on young people’s financial stability.

“All students should be suspicious of anyone that asks them to move money on their behalf. As the old adage goes, if something seems too good to be true, it probably is – especially when money is at stake.”

2.      18-24s feel unsafe on social media due to scammers

• 71 per cent of scam claims by 18-24s originate on social media
• 66 per cent have noticed more scammers on social platforms in the last year
• 39 per cent feel unsafe on social media due to scams; 73 per cent want tech firms to take action

Barclays data shows that 71 per cent of all scams reported by customers aged 18-24 since January 2023 originated on social media, in comparison to an average of 50 per cent across all other age groups (i.e. those aged 25+). This comes as two thirds (66 per cent) of young people surveyed say they have noticed more scammers operating on social media platforms in the last year, while two in five (39 per cent) feel unsafe on social media due to the prevalence of scams. The majority – 73 per cent – want to see tech firms take action, and do more to stop scammers operating on their platforms.

Kirsty Adams, Fraud & Scams Expert at Barclays says: “Social media is the number one way scammers target victims of all ages, but our data shows young people are particularly susceptible. This is likely due to the sheer amount of time they spend on these platforms, and how comfortable they are shopping and making payments online.”

3.      Young people more likely to fall victim to purchase scams

• Purchase scams make up 76 per cent of young people’s scam reports
• Scam claims increased 11.6 per cent month-on-month in April 2024, coinciding with student finance payments

Purchase scams – where scammers list fake or non-existent items for sale on social media and online marketplaces – are the most reported scam by young people, making up three quarters (76 per cent) of claims made by those aged 18-24 from January 2023 to July 2024. Conversely, for other age groups, purchase scams accounted for 66 per cent of reports, potentially because younger consumers spend more time on social media and are more comfortable shopping and paying online. One in eight (12.1 per cent) claims by those aged 18-24 were for advance fee scams, while impersonation scams made up 6.5 per cent of their reports.

Across all scam types, younger consumers’ average reported loss was significantly lower than the rest of the population, at £701 versus £2,914 respectively, showing older Brits are more likely to fall victim to higher value scams. Looking at changes in the total volume of scams, claims from 18-24s increased 11.6 per cent month-on-month in April (in comparison to a -1.1 per cent decline for other ages), coinciding with the timing of student finance payments.

Kirsty Adams, Fraud & Scams Expert at Barclays, says: “Scammers are often very strategic about who they target, why and when, seeking out victims whose circumstances might make them particularly vulnerable or susceptible. Purchase scams can be especially devious; scammers are becoming increasingly adept at mimicking brands’ websites and communications and posing as legitimate companies. We encourage everyone to verify the site they’re buying from before making a purchase, and to ensure they’re only paying via authorised means.”

ENDS

Notes to Editors:

For more information, please contact Dee Fallon at deirdre.fallon@barclays.com.

Unless otherwise specified, the scams figures in this release are based on Barclays business and current account customer data from January 2023 –  September 2024.

The consumer research was carried out between 28^th – 30^th August by Censuswide on behalf of Barclays. There were 1,007 UK respondents aged 18-24, providing a representative sample of this group by gender and region.

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