Cost of living: Young professionals targeted by investment scams

LONDON - Young professionals trying to make and save money to cope with the soaring cost of living are at risk of being exploited by scams, banks have warned.

They are being targeted on social media by scams which claim to offer a money-making investment opportunity.

Younger people are particularly vulnerable to these cons as they try to boost their income to pay rising bills, according to banking group UK Finance.

Safety groups have also warned about dangerous, cheap, second-hand goods.

Young people are being approached on social media with offers of investments that are said to bring quick, high returns.

Fraud prevention service Cifas said that fraudsters quickly directed victims off these platforms to private emails or accounts, where their details and money were then stolen.

A survey by UK Finance suggested that more than a third (34 percent) of 18 to 34-year-olds said they would respond to an unprompted approach from someone offering an investment opportunity or a loan, with 30 percent saying they might also provide their personal or financial details to secure the arrangement.

“The rise in the cost of living can be worrying and stressful and for many, keeping on top of finances might be a struggle,” said Katy Worobec, managing director of economic crime at UK Finance. “It’s important for everyone to be conscious of criminals taking advantage of people’s anxieties around finances by staying alert for fraud. “We encourage everyone to follow the advice of the Take Five campaign - always be cautious of any messages or calls you receive and stop and think before sharing your personal or financial information. Avoid clicking on links in unsolicited emails or text messages.”

Recent figures from UK Finance showed that £609.8 million was lost due to fraud and scams in the first half of this year.

Consumer safety charity, Electrical Safety First, is also warning younger people to be careful when buying second-hand products instead of new ones to save money.

It said more than 40 percent of consumers it asked in a survey were considering buying second-hand electrical items as an alternative to new products, specifically owing to the cost-of-living squeeze. That rose to twothirds of 25 to 34-year-olds.

The charity is urging everyone to perform spot checks of older, second-hand electrical goods that could present a risk due to damage, years of wear and tear or be subject to a safety recall. “Check the product you’re buying isn’t recalled and that it is fitted with a UK plug. Ensure cables aren’t frayed or wires exposed and always register a second-hand product when you get it home,” said Martyn Allen, technical director of Electrical Safety First.

“Second-hand goods can be great for saving money and better for the environment but no purchase should ever leave you at risk.”