British adults lose on average £1,002 through financial fraud, according to new research by Kalgera.

This is a platform designed to help banks and financial institutions identify and protect vulnerable customers from financial harm.

The research reveals that more than a fifth of British adults have been tricked out of money by financial fraudsters.

This figure rises to £1,523 for people who have a carer, while those aged 25 to 34 lose the most at £1,355. Of those who have lost money, 3% have lost £10,000 or more.

It has been a year since the Financial Conduct Authority (FCA) issued guidance for banks and building societies to protect vulnerable customers.

The FCA designed its guidance to help financial institutions better understand the needs of vulnerable customers. It is meant to enable them to make any necessary changes to ensure they are treated fairly.

Despite the FCA guidance, the scale of the problem appears to have increased. In fact, 39% of people are fearful, anxious or concerned that a scammer may target them. This rises to almost two thirds for those who have a carer.

In addition, the research found that two in five respondents self-identify as financially vulnerable.

More than half of UK adults do not think banks and building societies do enough to help customers who are financially vulnerable. It rises to 68% for those who have a carer.

About 29% do not know where to get advice. This figure rises to 53% for those who have a carer.

The pandemic and a hike in the cost of living have taken their toll on the physical, mental and financial health of the nation.

In fact, 17% of Brits admitted they do not think through financial decisions as well as they did before the Covid-19 pandemic and 21% say they are struggling financially.

Kalgera founder Dr Dexter Penn says: “In the year since the FCA issued guidance for banks and building societies to better protect vulnerable customers it has become clear that the problem has worsened because of the pandemic, rising living costs and opportunistic fraudsters.

“Most of us know someone who has been targeted by fraudsters; the frequency of more sophisticated scam approaches has rapidly increased as the majority of payments are now digital and cashless.”

The increase in people using digital services such as online banking has also created more opportunities for fraudsters.

More than four in 10  people said fraudsters targeted them since the beginning of the first lockdown (March 2020).

Besides, 28% of people admit they do not feel entirely confident or safe using online banking services.

Moreover, a quarter said they have bought something after seeing a sale or promotion on social media or via an unsolicited text or email from a brand unknown to them.

Kalgera warns that the cost-of-living crisis is going to increase the levels of vulnerability.

Penn adds: “There is concern that we will see a rapid increase in the number of people experiencing financial vulnerability, which leaves people more susceptible to becoming a victim of financial fraud.

“To reverse this trend, industries, including finance, technology and healthcare, need to come together to improve the way we detect the drivers of vulnerability and intervene before people are tricked into parting with their hard-earned money.”

The latest KPMG’s latest UK Fraud Barometer revealed that cases of fraud by employees rose last year. It showed the number of fraud acts committed by employees rose from 44 in 2020 to 66 in 2021.