Children a ‘significant and growing target’ for fraud, report finds

The report by Crest Advisory shows that fraud is a near-universal experience for young people online, yet despite this, more than two thirds of victims never formally report the crime, and support systems for victims are typically not designed with young people in mind.

Produced in partnership with Action Fraud and the City of London Police, the report is the first comprehensive study of fraud victimisation among children and young people (CYP) in England and Wales.

Fraud is now the most common crime in the UK, with an estimated £219 billion lost each year. It is often linked to organised crime and recognised by the Government as a major threat to public safety.

This report finds that children are a “significant and growing target”, yet national strategies, enforcement activity and awareness-raising efforts have historically overlooked them and instead focused on adults.

Analysis of National Fraud Intelligence Bureau data found that in 2023 alone, fraudsters stole £31 million from children and young people in England and Wales. However, only 22 per cent of victims reported the crime to Action Fraud, only 27 per cent reported to the police, and many did not report it to anyone including their bank.

The research is based on surveys of 1,000 CYP aged 13-21, 999 parents/guardians, 19 in-depth interviews with CYP fraud victims, and an analysis of 2023 National Fraud Intelligence Bureau data.

The report found that in the past year:

• Nearly one in three children and young people (13-21 year olds) reported in the survey that they had been a victim of fraud
• 88 per cent of 13-21-year-olds reported in our survey that they had been a target of fraud; and
• Only one per cent of children and young people who responded to our survey had not encountered fraud.

The survey also found that those with special educational needs (SEND) were more likely to be defrauded than those without (39 per cent v 23 per cent), while 20-21-year-olds were almost twice as likely to be victims as 13-15-year-olds.

Fraud often occurred around financial milestones, such as receiving a bursary or opening a first bank account. The scams most commonly occurred on social media platforms including Instagram, Facebook and TikTok.

The impact on children and young people is significant, but support for them is limited, says Crest Advisory.

For many children and young people, the consequences of fraud extended far beyond financial loss:

• 46 per cent experienced strong emotional reactions such as fear, anger or sadness;
• 27 per cent said it impacted their mental health; and
• Some described losing confidence or withdrawing from digital spaces altogether.

Despite the harm, reporting remained low. The report found that only:

• 35 per cent contacted their bank;
• 27 per cent contacted the police;
• 22 per cent reported to Action Fraud; and
• 24 per cent did not report at all — often because they did not know how.

Those who did report described confusing, impersonal processes and a lack of follow-up.

Beth Mooney, head of research at Crest Advisory, and research lead, said: “Crest found that almost all young people are affected by fraud. Amongst those who reported being a victim, impacts were significant and, for many, long lasting.

“It is vital that reporting and support systems are improved and tailored to the needs of young people. Our Action Plan – co-designed with experts, parents and young people – sets out practical steps to reduce harm and improve support.”

This research supports the Government’s view and echoes intentions set by Fraud Minister Lord David Hanson to tackle fraud through prevention, innovation, better data recording and a system-wide cultural shift, says Crest Advisory.

With millions of children and young people exposed to fraud every year, the report calls for urgent and coordinated action from banks, platforms, schools, police and policymakers.

The report includes a detailed action plan for government, policing, private organisations and the wider system, setting out how to prevent harm and support young victims. Key recommendations include:

• Put CYP at the heart of the national fraud response, through an integrated strategy or standalone CYP approach;
• Embed fraud education early, via schools, banks and digital platforms;
• Introduce safeguards during key financial milestones;
• Make reporting easier and youth-friendly, with clearer communication, joined-up systems and access to wellbeing support; and
• Improve data collection and transparency to ensure CYP fraud is properly recorded, tracked and prioritised.