The ripples of scams: impact on UK consumer behaviour online

Key findings 

• Scams are widespread: 29% of UK adults experienced a scam in 12 months from August 2025, we estimated nearly 1 billion (£960 million) was lost to scams 
• Some consumers are retreating to safety: 73% of those scam-experienced choose familiar companies for this reason, which risks market concentration and squeezing smaller businesses 
• Early adopters at risk: younger, digitally active consumers who have been scammed may pull back, slowing the adoption of new products and digital innovation 
• Reliance on reviews is a double-edged sword: victims lean more on online reviews and influencers, but fraudulent content still creates vulnerability
• Action is crucial: government action and Ofcom enforcement are needed to restore confidence

The cost of broken trust

The digital economy runs on a currency more valuable than sterling, it runs on consumer trust. The UK has a strong e-commerce market, supported by consumers' willingness to try new platforms, click on new advertisements, and transact with new businesses. Our new research suggests that this engine of growth may be starting to show signs of sputtering. 

As we enter 2026, our findings indicate changes in consumer behaviour. By August 2025, nearly three in ten (29%) UK adults had either been scammed directly or seen a close friend or family member fall victim in the past 12 months. While financial loss is often the most visible impact, our research points to a deeper, more insidious consequence. We found that some consumers appear to be retreating into “walled gardens”, limiting their engagement with the wider online marketplace, instead favouring familiar brands and established platforms and avoiding new businesses and innovations. While others are placing greater trust in reviews and recommendations they see as safer alternatives. Yet coping strategies like relying on customer review sites or influencers can create new vulnerabilities - particularly where reviews are manipulated or fraudulent, giving a false sense of security.

This suggests that, for some, increased exposure to online fraud is leading to greater caution with new or unfamiliar businesses online. Negative experiences with unfamiliar websites or offers can make consumers more hesitant, potentially creating barriers for new market entrants and limiting competitive pressure. Over time, this could affect the conditions that support innovation and growth in digital markets.

This briefing sets out evidence that consumer self-protection alone may not be sufficient to address these risks of online fraud and to the economy should consumer behaviour change. Left unchecked, if these more defensive behaviours persist, they could have longer-term implications for how digital markets operate. Immediate action from the government and Ofcom is needed now to safeguard consumers and restore trust before these patterns become entrenched.

The scale of the crisis

To understand the possible behaviour shifts, we must first appreciate the scale of the problem facing the British public. In August 2025 we conducted an online survey of over 8,000 UK adults to understand the prevalence of scams for both those who were direct victims and those who knew a friend or a family member that had been scammed.  

We found that the reach of fraud is no longer confined to the margins. Almost one in seven UK adults (14%) have personally experienced a scam in the last year. When we include those who have supported a close friend or family member through the ordeal, that figure rises to 29% (see Figure 1).

Figure 1: level of scam experience in the last 12 months (as at August 2025)

Many of these scams occur within the context of everyday online shopping. The most prevalent type, accounting for 31% of reported experiences, was the hollow purchase of buying fake products or services that simply never arrive. This is not sophisticated high-finance fraud, rather these cases reflect the exploitation of everyday shopping activities (see Figure 2).

Figure 2: types of scam and percentage that lost money for that scam

The financial toll 

While the median financial loss for victims buying fake products and services online sits at £50, the aggregate impact across all scams is staggering. Our research estimates that £960 million was lost to scams in the last 12 months alone (between August 2024 and August 2025). A figure closely aligning with the UK Finance estimates of over £1 billion.  

This represents nearly £1 billion was lost from legitimate economic activity. However, looking solely at the money lost misses the larger point and only tells part of the story. Even relatively small losses, such as the median £50 spent on fake products or services, can leave a lasting mark, shaping how consumers engage online. Our research below suggests that for some, this experience may be enough to make them wary of online advertising and shopping online in the future. 

The behavioural shift

To explore how scams change online behaviour, alongside our nationally representative survey of over 8,000 UK adults, we hosted 29 participants on the online research platform, Recollective, who had directly or indirectly experienced a scam. Over a 5 day period, we asked questions and set tasks to see whether, and how, participants’ online habits had changed. 

Our thematic analysis identified several patterns:

1. A shift to buying from trusted retailers and established brands, avoiding new or innovative sellers
2. A steer clear of social media marketplaces
3. A heavier reliance on reviews and family/friend recommendations 
4. An increased use of third party payment methods
5. An implementation of multi-stage passwords and additional security measures

Of all these behaviours, the most frequently discussed was the move towards trusted retailers.

Withdrawing from innovation and seeking protection from well-known brands

The most common behaviour identified from our qualitative research was that some victims were retreating from the wider online marketplace, sticking instead to tried-and-tested brands and platforms they perceive as safe. This is a defensive move reflecting a desire to avoid risk, simplify decisions, and rely on familiar, trusted environments. One young victim explained their new mindset since being scammed: 

“We will typically buy from very well-known brands [now]. We won’t make big purchases from smaller brands or online sites that you’ve never really heard of” - 18 to 34 years old, friendship scam

This behaviour doesn’t appear to be a preference, rather a safety mechanism. Our survey confirmed that nearly three quarters (73%) of scam-experienced individuals cited safety as their primary reason for shopping with well-known companies, compared to only 59% of those who haven’t been scammed. 

“I now avoid shopping on unknown platforms or websites” - 45 to 54 years old, investment scam

Our research also indicated that the exploratory phase of the online customer journey, where consumers discover new products and businesses, is not always being fulfilled, but in some cases disrupted or shut down. We found that some victims were actively avoiding social media marketplaces and search engine suggestions, which are the very channels that smaller and newer businesses often rely on to be discovered. One victim of a purchase scam told us:

“I avoid shopping on the suggested sellers that Google returns on searches now… Before, I would often browse and purchase from platforms that had exceptionally better pricing than major retailers” - 18 to 34 years old, purchase scam

For a few there is a more dramatic shift, with the solution being total withdrawal. As one victim explained:

“I’m not on Facebook or anything like that anymore, sort of been burnt in the past about it” - 45 to 54 years old, purchase scam

In effect, consumers are shutting down their own discovery paths, limiting exposure to innovation and reducing opportunities for emerging sellers to be noticed.

Adapting to risk by seeking third party payment protection

Some consumers respond to scams by adjusting how they engage with online transactions. The era of “one-click” trust appears to be giving way to a more cautious approach, often involving the use of intermediaries.

This is most evident in the use of third-party payment providers such as PayPal, used by 86% of consumers who have experienced scams compared with 78% of those who have not. 

As one young participant explained, this approach gives them greater control and reassurance:

“I used to pay online using my bank card, but now I prefer using a third party… because I feel that my details are more protected and I’m not sharing them directly with the actual website” - 18 to 34 years old, identity scam

While these behaviours may slow transactions and create a sense of security, they do not always provide the legal protections available when paying directly with a credit card, and can sometimes complicate attempts to reclaim lost funds. Rather than being purely protective, these adaptations can create friction and are a coping mechanism, reflecting how consumers respond pragmatically to online risks, even if they don’t fully understand the limits of third-party protection.

Coping strategies, like relying on reviews, can create new vulnerabilities

In response to scams, consumers are often turning to tools and information sources they perceive as safer, such as recommendations from family and friends, customer review sites, and online influencers. For example, 59% of scam victims sought advice from family or friends, compared with 49% of non-victims, while 55% relied on customer review sites versus 46% of non-victims. As participants described:

“Since the scam my eyes have been opened a lot and although I thought I was fairly cautious before, I am deadly serious about checking [reviews] now.” - 65+ years old, Facebook Marketplace scam

“I do look on sites like Trustpilot… if it's a new company that's new to me. I do check if they've got a physical address and just try and make sure they're above board.” - 45 to 54, investment scam

These strategies show consumers adapting to risk, but they are not foolproof. Reviews, recommendations, and influencers are not always reliable, and fake reviews or misleading content can create new opportunities for error. Previous Which? research has shown that such content is widespread, and the increasing sophistication of Artificial Intelligence (AI) generated material can make it harder to identify. Some participants also reported relying more on influencers, which can further expose them to potentially misleading information. This is especially concerning in the context of financial promotions, where the FCA has taken part in an international crackdown against “finfluencers”:

“I sometimes trust influencers, especially if they seem genuine or I follow them for a while.” - 18 to 34, dating scam

Added protection through multi-stage passwords and security measures

We found that experiencing a scam can also prompt a shift towards being more careful with privacy and security among direct victims. A strong theme that emerged was that people used different and robust passwords. As one young participant who was a victim of identity fraud explained:

"I use strong passwords and protect a lot of my personal information by sharing as little as possible because of my fears of scammers getting my personal information again... This is different from before when I didn't give much thought to what personal details I shared online" - 18 to 34, identity fraud

Furthermore, this heightened security mindset extends to how consumers handle their payment data, with some actively adding friction to their transactions as an additional security measure to prevent data theft. For example, a participant who had indirect experience with a bank impersonation scam noted:

"I used to pay online using my saved cards on my phone and laptop, but now I prefer entering my card details myself because I don’t like the idea of my card details being saved on a device that can be taken from me" - 18 to 34, indirect experience, bank impersonation scam

Overall, our qualitative findings suggest that exposure to scams is gradually reshaping online behaviour. Some consumers are not simply returning to their previous habits; they are making deliberate changes to how they engage with the digital world. While these behaviours can help manage risk, they may also influence consumer trust, market dynamics, and the willingness to try new or innovative sellers.

Innovation at risk of scams and early adopter behaviour

Our research indicates that exposure to scams may be influencing how some consumers behave online, with potential implications for growth. Those affected include a subset who tend to be younger, more digitally active, and believe themselves to be influential within their online networks. Younger adults aged 18 to 34 made up a higher proportion of those who were scammed (32%) compared to their proportion of those who hadn’t been scammed (26%). They were also more likely to describe themselves as people whose views in general influenced others online (15% vs 6%) and were more likely to rely on social platforms such as Facebook for daily news (40% vs 31%) (see Figure 3).

Figure 3: The demographic group differences between scam-experienced and non scam-experienced.

While not all consumers affected by scams fit this profile, there is a larger proportion who have already been scammed and may have experienced undermined confidence as a result. Some may become more cautious and pull back from experimenting or recommending new digital services, which could have two potential consequences: 

1. Slower innovation - fewer early users testing and sharing new sellers may reduce the pace at which offerings are refined and gain traction
2. Market concentration - a shift towards well-known, trusted retailers could inadvertently strengthen established brands while making it harder for smaller or newer businesses to reach customers

Overall, the research indicates that scams can influence behaviours that typically support growth in online markets and innovation, highlighting the importance of maintaining consumer trust in online markets.

The inertia problem

Not all consumers respond to scams by withdrawing from online activity. Many continue to explore new products and services, maintaining engagement in the online economy. However, a small proportion may become stuck in inertia, uncertain about which options are safe online. In the absence of clear signals about trustworthy providers, these consumers may delay decisions or inadvertently be exposed to different risks (e.g. misleading online reviews), potentially slowing participation and limiting opportunities for both themselves and the wider market. 

These patterns are drawn from our qualitative and quantitative evidence. They suggest possible behavioural trends, but further investigation of behavioural change is needed to confirm these effects.

Conclusion and recommendations

Scams don’t just cause personal financial losses, their impact extends to online behaviour, and trust. Our research highlights how these experiences shape consumer choices: victims may be more likely to prioritise safety when choosing retailers, avoid social marketplaces, use third-party payment providers, and over-rely on reviews, including those from online influencers. 

Our findings suggest that a portion of those affected are people who are more digitally active, willing to try new platforms, and see themselves as influential online. If their confidence is shaken, it could slow the adoption of new products and concentrate market power in established businesses. 

The online world is integral to daily life - banking, shopping, accessing services, and saving - and participation must be secure and accessible for all. Scam experience undermines this balance, and the risk is growing, particularly as scams become more sophisticated and AI-generated content increases the potential for deception. 

The evidence indicates that individual caution alone is no longer enough. Consumers are trying to protect themselves, but their strategies (avoiding new businesses or relying on reviews) can be economically damaging and sometimes result in exposure to different risks. 

To restore a careful balance in the digital ecosystem, government and Ofcom action is needed to make the environment secure by design and rebuild consumer trust. In order to achieve a more secure and therefore more trustworthy digital environment, we recommend the following:

1) Stronger enforcement of the Online Safety Act Ofcom’s report

Online Safety in 2025, identified several shortcomings in online platforms engagement with the online safety regime. Meanwhile, Which? frequently finds examples of potentially fraudulent user-generated content on online platforms, despite the regime having been in force for close to one year. Ofcom must actively enforce the Online Safety Act’s current provisions to protect consumers from scams on online platforms.

2) Acceleration of the fraudulent advertising codes

Many online scams are perpetrated via fraudulent paid-for adverts on major social media platforms and search engines. The Online Safety Act contains specific provisions to tackle scam advertising, but Ofcom has delayed the implementation of these provisions on numerous occasions. The regulator should urgently  create and implement the fraudulent advertising codes of practice, and the government should introduce a statutory deadline to ensure that the codes are delivered urgently. 

3) Regulate open display advertising

One in six fraudulent adverts are placed on websites - including news websites with millions of daily readers - via the open display market, which remains largely unregulated. These adverts are not in scope of the Online Safety Act, and while the previous government had pledged to tackle them, the current government has not taken that work forward. The government should legislate to regulate fraudulent adverts on the open display advertising market and close this loophole. Consumers should not have to guess whether an ad served to them on a legitimate website is a trap.

Methodology

Yonder, on behalf of Which?, conducted an online nationally representative survey with 8,359 UK adults (2,365 with scam experience and 5,994 without scam experience). Fieldwork took place in August and September 2025.

Which? conducted an online community of 29 participants who were directly or indirectly scammed. They were given tasks to complete over a 5 day period. We wanted to understand whether an experience of being scammed changed people’s online behaviour. Fieldwork took place in June and July 2025.