Complaints from young people who have fallen victim to scams jumped by almost 10% over the past year, the Financial Ombudsman Service has reported.
It said 18-29-year-olds submitted more than 6,200 cases to the FOS in the period, a fifth of all complaints it receives.
In total, the Ombudsman received almost 30,000 fraud and scam complaints in the 12 months to 31 August.
Research found that more than half of young people said they had been cold called by someone posing as a trusted organisation, such as a bank, phone or broadband provider, or the police.
Around half of the Ombudsman’s fraud and scam caseload involves authorised push payment (APP) fraud, where consumers are manipulated into transferring money directly to a scammer’s bank account.
Others unknowingly pay fraudsters by debit or credit card. Both these payment types are prevalent in the scams that consumers contact FOS about.
Purchase, employment and investment scams topped the list as the most common scams impacting young people.
Scammers generally target young people online and through social media, advertising fashionable or hard-to-find goods, discount codes, wholesale prices or rental accommodation on social media, where consumer protections may be limited.
The FOS said calls can form part of wider scams that often begin online or through social media, with fraudsters using pressure to persuade victims to share personal information or transfer money.
The service also found that fraudsters are enticing jobseekers with promises of easy, flexible online work and guaranteed pay. Some make small initial payments to build trust before demanding ever-larger deposits or fees to release supposed earnings.
Investment scams may use fake celebrity endorsements or bogus account managers to promise fast, guaranteed returns, frequently involving cryptocurrency.
Investment and task-based employment scams involving cryptocurrency payments are not covered by the Payment Systems Regulator’s APP Scam Reimbursement Rules. This can make it much harder for consumers to recover their money.
Patrick Hurley, Ombudsman director at the Financial Ombudsman Service, said: “Falling victim to a scam is a devastating experience that no one should have to endure. Fraudsters often hide in plain sight on social media, targeting young people who are looking for work, trying to earn money or simply hoping to buy the latest must-have item or ticket.
“We are warning people to be sceptical of tempting offers and what is being promised. If it looks too good to be true, it probably is. Stop, question it and do your research before you buy or sign up.”
• Research among 2,000 adults across the UK was conducted by YouGov (on behalf of the Financial Ombudsman Service) between 11 - 17 August.