Survey: millennials & men most targeted by financial fraud

Reports of financial fraud continue to rise despite companies' efforts to help customers avoid falling victim to scams. New research by Arbuthnot Latham reveals that millennials are significant targets for financial fraud, with one in ten having experienced fraud more than once. Men are more frequently victims compared to women, though they exhibit less concern about being defrauded.

The research highlights that 28% of High Net Worth (HNW) individuals in the UK have been victims of fraud. Within this demographic, those aged 35-44 are the most likely to experience fraud, with 43% reporting falling prey to scams. Notably, a quarter of this age group has faced fraud multiple times. This dispels the common belief that older generations are more susceptible; only 17% of those aged 65 and over reported being victims.

The survey underscores the gender disparity in fraud vulnerability. 30% of high-net-worth men reported being victims of fraud, compared to 25% of their female counterparts. Despite this, men appear less worried about the potential for future fraud incidents. Over half of the men surveyed expressed a lack of concern, compared to 40% of women.

Arbuthnot Latham conducted the research in collaboration with Atomik Research, surveying more than 500 UK residents with investable assets of at least GBP £100,000. These findings highlight the sophisticated and persistent nature of fraudsters who continue to target even the most financially savvy individuals. With 12% of high-net-worth individuals experiencing repeated fraud attempts, the survey indicates the ongoing and pervasive threat to financial security.

Rob McClaren, Head of Fraud Prevention at Arbuthnot Latham, provides several key strategies to safeguard against scams. He advises closely examining email payment instructions and verifying email addresses to ensure authenticity. Setting up new payees should be done cautiously, preferably through verbal verification using contact details already on record.

Additionally, if discrepancies arise during the Confirmation of Payee process in online banking, individuals are urged to independently verify account details. McClaren also strongly advises never disclosing security details or one-time passcodes over the phone to prevent falling for scams.

The survey further segments fraud experiences by age group. High-net-worth individuals under 35 are the least likely to fall victim to fraud, with 55% reporting they narrowly avoided scams. This contrasts sharply with those aged 35-44, where fraud prevalence is notably higher.

The lesser concern of high-net-worth men about fraud, despite their higher susceptibility, suggests a potential area for increased financial education and awareness. Arbuthnot Latham's comprehensive approach to private and commercial banking, including wealth management and specialist lending, underscores its commitment to protecting clients' financial interests.

The detailed findings from Arbuthnot Latham's study indicate an urgent need for heightened vigilance and proactive measures in combating financial fraud. Continual awareness and preventive strategies are vital in ensuring financial security for high-net-worth individuals across the UK.