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The groundbreaking study into the prevalence of mass marketed scams in the UK provides the first ever detailed analysis of the financial impact and harm caused by such scams. The survey, involving over 11,200 interviews, found that nearly half of the UK adult population has been targeted by a scam and that every year one in 15 people (3.2 million adults) in the UK fall victim to a scam involving deceptive unsolicited mailings, phone calls, or emails. The average amount lost per scam was £850.

The research suggests that consumers lose around £1.2 billion every year to bogus holiday clubs, £490 million to high risk investment scams, £420 million to pyramid and get-rich-quick schemes, and £260 million to fake foreign lotteries. On average a victim has a 30 per cent chance of falling for another scam within 12 months of first being caught out, most likely because their personal details are added to a so-called 'suckers list', which are then sold on to other scammers.

The highest average losses per victim were £5,660 for investment scams, £5000 for African advance fee scams, £4,240 for property investor scams, £3,030 for bogus holiday club scams, and £1,900 for foreign lottery scams.

The mass marketed scams included within the research were premium rate telephone prize scams, prize draw and sweepstake scams, pyramid selling and chain letter scams, bogus holiday clubs, foreign lottery scams, work at home and business opportunity scams, miracle health scams, fake loan scams, internet dialer scams, African advance fee fraud, property investor scams, clairvoyant mailing scams, high risk investment scams, career opportunity scams, and internet matrix scheme scams.

Whilst older consumers were more likely to be targeted by a scam, the highest percentage of victims were aged between 35-44 years. Of those who fell for the scams, 32 per cent said it was because of the legitimate and professional appearance of the marketing, 30 per cent said they were caught off guard, and 13 per cent because of the excitement at the prospect of getting a good deal or winning a prize.

The research also highlighted that whilst men and women are equally likely to be victims of scams, women are more likely to fall victim to miracle health scams (71 per cent of overall victims), clairvoyant mailings (70 per cent), and career opportunity scams (63 per cent), while men are more likely to lose money to investment scams (72 per cent of overall victims), property investor scams (68 per cent) and advance fee scams (65 per cent).

In addition, the research showed that less than five per cent of those scammed reported their experience to the authorities, and more than half of victims have since changed their shopping behaviour, for example by becoming less likely to respond to any unsolicited offers or shop on the internet.

Mike Haley, Head of Scambusters at the OFT, said:

'This research shows for the first time the full extent of damage done to individuals and to the wider UK economy by manipulative and malicious scams. The £3.5 billion stolen from the public, which will line the pockets of scammers this Christmas, equates to about £70 per year for each adult living in the UK. This research explodes the myth that only the elderly are victims of scams. Young and old, and people from all backgrounds are taken in by increasingly sophisticated scams.'

Nearly all scams operate on the basis of offering consumers something for nothing, such as a major win in a lottery or prize draw (even though you have never entered), an exclusive entry to a scheme, or a way to earn easy money. They will ask for consumers to send money up front. The OFT advice to consumers is: stop, think and be sceptical.