Fraud is having a lingering impact on mental health, Which? research shows

Fraud is having a lingering impact on some victims’ mental health, research for Which? has found.

The consumer group commissioned a survey of more than 1,000 people across the UK who had lost money to fraud in the last two years.

Of those who reported the fraud, just over half (55%) were able to get all their money back, but nearly a quarter (22%) said they received no reimbursement at all.

People were also more likely to say their experience of fraud had a negative impact on their levels of stress (71%) and mental health (60%) than on their financial situation (50%).

The research indicated that victims who had been professionally diagnosed with mental ill health at the time of the fraud were less likely to get all their money back than those with no diagnosis (45% versus 60%).

Those with existing mental health issues who did not tell their bank about the fraud were also more likely to say this was because they had previously had a bad experience doing so, compared to those with no diagnosis (11% versus 5%).

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The findings were released ahead of new fraud reimbursement rules coming into force next month.

From October 7, the mandatory rules will require banks to reimburse customers who are victims of bank transfer scams unless the customer has been grossly negligent.

A previous maximum reimbursement value had been set at £415,000 under the plans.

But last week, the Payment Systems Regulator (PSR) announced a consultation into a new lower cap, set at £85,000.

Which? is urging the regulator to stick to the previously proposed £415,000 limit.

Rocio Concha, Which? director of policy and advocacy, said: “Our research lays bare the long-lasting emotional impact fraud can have for victims and shows why mandatory reimbursement rules are desperately needed to help ease the unfair emotional and financial burden on those who fall victim to increasingly sophisticated scams.”

In April, Focaldata surveyed more than 1,000 people who had lost money to fraud.

Jim Winters, head of financial crime at Nationwide Building Society, said: “Fraud is fraud, no matter how big or small, and it can have devastating effects.

“That is why we encourage victims to come forward, tell their story, report crime and go through the refund process, regardless of the amount lost," he added.

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