Londoners most at risk of online fraud, report reveals
Londoners are at significant risk of digital and financial exclusion after new data revealed one in four people in the UK capital lack confidence in money management.
According to research from WPI Economics and Virgin Money, Londoners are twice as likely to experience both digital and financial exclusion than those living in the South East.
Nearly 80 per cent of those in the capital require help and support for financial decisions, storming ahead of the UK average of 70 per cent.
Matthew Oakley, founder and director of WPI Economics, said: “Despite London’s reputation as a financial powerhouse, Londoners are amongst the most at risk of online scams, and the least confident in knowing what to do if they are scammed.”
Despite this, seven in 10 Londoners said they are confident they would recognise scammers.
UK Finance’s annual fraud report revealed criminals stole £1.17bn in 2024, as online scams ramped up to 70 per cent of total cases.
Oakley said: “It is important for the government, industry and education providers to work together to create a lifelong approach to supporting people in managing money safely and effectively online.”
The government has been tasked with addressing wider financial literacy issues after research from the Financial Capability Survey found 39 per cent of Brits do not feel confident managing their money.
Gen Z falling behind
Younger generations were highlighting to be falling behind amid scaling scams and worries of financial exclusion.
Nearly 30 per cent of Gen Z respondents had been victim of a scam, compared to 13 per cent of older generations.
The age group was also the least likely to know what to do when scammed at 65 per cent, trailing behind 69 per cent of older generations.
City PM previously reported 70 per cent of Gen Z use social media and financial influencers – dubbed influencers – when making investment decisions.
Chair of the Treasury Committee Meg Hillier issued a letter to tech giant Meta last week after escalating concerns social media platforms were not acting quick enough to remove harmful content.
Raymond Pettitt, director of customer service and operations at Virgin Money, said: “This research busts the myth that younger generations are immune from digital and financial exclusion.
“In reality, Gen Z is falling through the cracks and unless the Government acts swiftly in partnership with the banking industry and the third sector to create a unified approach to tackling this, we risk leaving a whole generation behind.”