Insta-scam: how scammers are targeting younger users online

Scammers are changing tack again. Where previously the elderly or uninformed were common targets, now younger social media users also need to be on the lookout or could risk falling victim.

According to new data from Lloyds Bank, those aged between 18 and 24 are now most likely to fall victim to an investment scam, with those aged between 25 and 34 not far behind. 
 

Instagram: the new frontier of fraud

Instagram has become a new scam battleground, with reports of impersonation fraud increasing by a staggering 155% in the last year. The person-to-person platforms pride themselves on being accessible, but this can mean they inadvertently open the door to individuals looking to exploit their users.

Our studies show that on average, victims of fraud over the last year have lost an average of £336 to Instagram scams.
 

Just who is sliding into consumer’s DMs?

Impersonation scams are typically carried out by fraudsters who appear on consumers' social media feed or via direct messages, claiming to be a family member or friend. They use a different phone number and try to convince victims their phone has been lost or damaged and that they are in need of emergency cash.

Unfortunately, many who share money in good faith, thinking they’re speaking to a loved one, often find that they’ve been blocked once they have sent the cash and left out of pocket. 

Social media is now intimately woven into our lives – it’s how we stay in touch with people, see what’s in the news, treat ourselves to something new and keep up with influencers. Sophisticated organised criminal gangs know this, and are ready to adapt their deceptive methods instantly, lurking around every virtual corner to try and part you from your hard-earned cash.

These nasty impersonation scams target people’s natural desire to help family and friends as, instead of impersonating the police or the taxman, fraudsters are creeping closer to home and pretending to be those dearest to you. When using social media, we should all remain guarded, be vigilant against fraud attempts, and remember that if something seems fishy – you’re probably right.

Staying safe – top tips for avoiding scams on social media

• Users should never give their social media log-in details to anyone else and shouldn’t stay logged into social media accounts on shared devices, or in public spaces such as computers in libraries.
• Users should go through their social media account settings and put two-factor authentication for log-ins in place, where available.  This means they’ll receive an alert to a specified phone number or email address letting them know someone is trying to log in.
• Be aware when asked to share or like content on social media or fill in a form asking for personal details, particularly if there is an incentive to do so like a free tablet or games console. This is a common way fraudsters amass details to embellish their scams, including lists of victims friends or family. 
• Watch out for unexpected requests for money, even if it appears to come from someone you recognise. Always complete independent checks using other contact methods to verify the person’s identity. If it’s genuine, they won’t mind, and if a target is being put under pressure to transfer money quickly it should be a red flag.
• Users should be suspicious of adverts for products and services that are otherwise difficult to track down – such as in-demand games consoles or very high rates of investment return.  If the items or services offered can’t be found through well-known retailers or financial providers, then it may be a scam.
• Users should also never ignore warnings from their bank – they are there to provide protection