· Recovery room scams associated with cryptocurrencies were the most prevalent, accounting for 70% of all reported 2025 recovery room scams

· FCA impersonations were the highest reported to the regulator and account for over a quarter (26%) of reported scams in 2025

A Freedom of Information (FOI) request submitted to the FCA by TransUnion found that almost one in five (17%) of all scams reported in 2025 mentioned a form of recovery room scam. This percentage remains stubbornly high, underlining how many people who have already been targeted by a scam continue to be targeted again.

Recovery room scams, where criminals falsely promise to help recover money lost to a previous scam in exchange for an upfront fee, continue to cause significant harm. As many as 70% of these recovery room scams were associated with cryptocurrencies in 2025, with cryptocurrency scams themselves (14%) the third most reported scam type in that year, after FCA impersonation (26%) and recovery room scams (17%).

Madhu Kejriwal, chief executive officer of TransUnion UK and Europe said: “Unfortunately, there is a whole market of scams that target people who have already been defrauded. Once you’ve been a victim, fraudsters can seize the opportunity to target you a second time, and in a lot of cases, this can be effective because they hold verified information on the individual from the original scam.

“In the case of cryptocurrency scams, there is often no obvious route to recover lost funds, unlike traditional banking fraud, where customers can seek assistance from their bank. This naturally opens up an opportunity for criminals to pose as recovery agents.”

TransUnion's Tips for Protecting Against Fraud

1. Pause before you pay. Fraudsters rely on urgency. Any request to transfer money, share a one-time passcode, or act "immediately" to avoid a penalty should be treated as a red flag, whatever channel it comes through.

2. Verify independently. If you receive a call, email or message claiming to be from your bank, a government body or a company you deal with, contact them directly using a number or website you already trust, never one provided in the message itself. When contacting your bank you can use the 159 service, which provides direct connection to official bank contact numbers. If you have received an email which you’re not quite sure about, forward it to the Suspicious Email Reporting Service (SERS): report@phishing.gov.uk

3. Be sceptical of unexpected contact, even if it looks or sounds convincing. Always be cautious of an out of the blue contact offering to help recover money. Ask how the caller has the information. Reports of fraud can only be exchanged between law enforcement agencies and cannot be shared with private businesses that operate ‘so called’ recovery room services. Most phone providers are part of an initiative that allows customers to report suspicious text messages for free by forwarding them to 7726.

4. Protect personal information. Fraudsters increasingly use small pieces of publicly available data to build convincing, personalised scams. Limiting what is shared on social media and being cautious about who you share personal details with can reduce exposure.

5. Use multi-factor authentication wherever it's offered, particularly for banking, email, and any account linked to payments, as this remains one of the most effective barriers against account takeover.

6. Report suspected fraud promptly, both to your bank and to Report Fraud. Early reporting improves the chance of recovering losses and helps build the intelligence picture used to stop similar scams reaching others.

7. For businesses, review fraud controls regularly, particularly around payment authorisation and identity verification, given how quickly criminal tactics are evolving alongside the technology.

8. Understand tools available: Use FCA firm checker to check a financial firm is authorised and has regulatory permissions to provide the relevant service.

Notes:

Unless otherwise stated, all figures are from the FCA’s Freedom of Information: Right to know request.

1 "Recovery room scam" combines three categories as classified by the FCA: recovery room (crypto), recovery room (non-shares) and recovery room (shares).

●        Amongst those who were scammed, average losses were £504, with 15% losing more than £1,000

●        Younger shoppers are more than twice as likely (81%) to have encountered a scam when shopping online, compared to those aged 55 and above (32%)

Over three-quarters (78%) of shoppers are worried about being scammed this Black Friday, as one in eight (13%) have fallen victim, according to new research from TransUnion, a global information and insights company.

With almost 23 millionⁱ consumers expected to shop in this year’s Black Friday sales, many may be more vulnerable to fraud than they realise. One in eight consumers (13%) struggle to differentiate between genuine deals and scams, while nearly one in 10 consumers (9%) say big savings distract them from being vigilant. A smaller but still significant amount (8%) of respondents even admitted that they would be more likely to interact with a scam if it offered a substantial discount, and 6% said the potential risk of fraud would be worth it if they could save a lot of money.

Madhu Kejriwal, CEO of TransUnion in the UK and Europe, said: “As Black Friday deals ramp up, fraudsters are exploiting the rush to secure a bargain. These scams look increasingly legitimate, from fake products to cloned retailer websites. Consumers should take a moment before they pay, check the source, and avoid deals that seem too good to be true.”

Among those who had been scammed during Black Friday sales, 39% admitted they acted too quickly out of fear of missing out on a good deal, while 31% prioritised saving money over avoiding fraud.

After falling victim to a Black Friday scam, two in five (40%) consumers never received the item, while 31% received a different product to the one that they ordered. Almost three in ten (29%) scam victims also had their card details stolen, a quarter had their bank account details (25%) or personal information (24%) compromised, and 19% were victims of identity theft. Overall, these scams led to average losses of £504, with 14% losing more than £1,000.

This week, as ambassadors of International Fraud Awareness week - an annual, global initiative dedicated to raising awareness about the impact of fraud and promoting anti-fraud education TransUnion took to the streets of Leeds City Centre to talk to and help educate members of the public on the dangers of scams.

TransUnion spoke to a woman who highlighted how minor transactions alerted her husband that his bank account had been breached after falling victim to a scam: “[My husband] noticed that small amounts were going out from his bank account to a supermarket – so, it was like 8p then it went up to about 24p. I can’t say that I check my account that carefully, but he does and he recognised that…it wasn’t a supermarket that he shops in…So he rang the bank and in fact they [Fraudsters] were testing to see whether he picked it up.”

Chad Reimers, managing director of fraud & ID at TransUnion in the UK added: “Many consumers are unaware of the dangers of falling victim to a retail scam; over a quarter (27%) of consumers that have fallen victim admitted that they knew their purchase was risky, but did not consider it that big a deal.

“Online scams pose a real threat not only to your current finances, but to your future financial goals as well. Critically, it is not just the potential financial loss, but the compromise of personal or financial information which can result in further risks for consumers. This is why it’s important to remain vigilant to all potential fraud threats and act quickly should you think you’ve fallen victim.”

Gen Z and Millennial shoppers are at greatest risk, with seven in 10 (70%) 18-34-year-olds planning to shop online this year – above the national average of 41%. Yet, younger shoppers are more than twice as likely (81%) to have encountered a scam when shopping online compared to those aged 55 and above (32%).

With over a third (36%) of consumers unaware of the dangers of fraud during Black Friday, TransUnion shares tips to spot and avoid scams:

●      Be sceptical of unrealistic discounts – if a deal seems too good to be true, it probably is!

●      Don’t click on links in unsolicited emails, texts or social posts. Go directly to the retailer’s official website instead. If you have received an email that you’re not quite sure about, forward it to the Suspicious Email Reporting Service (SERS): report@phishing.gov.uk. Likewise, most phone providers are part of an initiative that allows customers to report suspicious text messages for free by forwarding it to 7726

●      Look for “https” and the padlock symbol in your browser before entering payment details. This indicates that it’s secure. You can also report a suspicious website via the National Cyber Security Centre

●      Use secure payment methods such as credit cards or PayPal, which offer extra protection

●      Set up alerts on your credit report and monitor it regularly to help you quickly identify and report any suspicious activity, or signs of identity theft. You can check your TransUnion credit report for free via Credit Karma, MoneySuperMarket Credit Monitor, or TotallyMoney and a wide variety of banking apps.

To find out more about what TransUnion are doing as ambassadors of International Fraud Awareness week, visit TransUnion’s International Fraud Awareness Week webpage.

Note:

Unless otherwise stated, all figures are from a nationally representative sample of 2,000 UK adults aged 18+. The data was commissioned by TransUnion and conducted in October 2025 by OnePoll.

i The UK adult population is estimated at 55,022,253 according to the ONS. 41% of UK adults plan to shop the Black Friday sales this year, or 22,559,123 adults.

Seven in 10 (70%) UK consumers have received a scam message that appeared to come from a trusted source, such as a delivery company, bank, or government body, only to find out it was fake – according to new research from TransUnion, a global information and insights company. 

With the rise in reliance of digital channels, combined with fraudsters now using artificial intelligence (AI) to create convincing and hyper-realistic voices, images and messages, it’s getting harder for consumers to detect these scam attempts. Over half (56%) of UK adults who have spotted a scam from a trusted source believe it used artificial intelligence (AI). 

Madhu Kejriwal, CEO of TransUnion in the UK and Europe, said: “As fraudsters exploit artificial intelligence, scams are becoming more sophisticated and harder for consumers to spot due to their sheer volume, accuracy and tone. These scams don’t just look real, they feel real. Whether it’s a delivery text arriving just when you’re expecting a parcel, or an email that looks like it’s from your bank, it’s more important than ever that consumers stay vigilant.”  

The financial impact of these scams is significant: nearly one in 10 (9%) have lost money to a scam message, email, video or phone call that felt too real to question, with 2% still unaware of how the fraudsters did it. Younger consumers are  potentially more vulnerable, as they may be more likely to rely on mobile messaging, with 13% of 25-34-year-olds and 11% of 18-24-year-olds losing money to these scams.  

Of those who lost money to fraud, 13% have lost less than £10. However, more than one in five (21%) have lost between £200 and £999, and 11% have lost at least £1,000. 

With AI-generated scams increasingly impersonating brands that people are most familiar with and often interact with, delivery fraud (where you are notified about a fictitious upcoming or missed parcel delivery) remains the most common tactic for fraudsters. Royal Mail is ranked as the most impersonated brand in the UK, as 40% of UK adults say they’ve received a fake message from fraudsters claiming to be from the courier. A similar number (38%) report receiving similar scam messages from Evri. 

 AI scams aimed at defrauding consumers via messaging services such as text messages/email/Whatsapp also impersonate government bodies like HMRC (36%), DVLA (14%) and the NHS (8%) in order to appear credible, often claiming recipients are owed a tax refund, need to pay a fine, or update their medical records. 

Top 10 most common scam impersonations: 

 Source: TU commissioned survey conducted in June 2025 by YouGov. 

 Chad Reimers, General Manager of Identity and Fraud at TransUnion in the UK and Europe, added: “Consumers should be aware that even if a relatively small sum of money has been lost, it may just be the first phase of the fraudster’s objective. In some instances, once fraudsters have access to personal details or login credentials, they will look to ‘takeover the account’ leading to further financial withdrawals, applying for additional credit lines and - in some cases - may even coach/coerce witting or unwitting money mules to shift funds quickly through accounts to launder their ill-gotten gains. It is therefore important that consumers stay vigilant and immediately report suspicious activity – especially in situations where they suspect their details have been compromised, and not just when money has been taken”  

Staying safe in an AI world 

• If it seems too good to be true, it probably is! For example, scammers pretending to be companies offering unlikely discounts or unusual offers, such as a free holiday or an investment with a guaranteed win 
• Be wary of telephone calls, messages or emails offering a rebate or refund – typically scammers are pretending these are from energy companies or HMRC.  Do not follow any links but if you think it may be genuine then call the organisation directly on their official number and ask for information.  
• When contacting your bank you can use the 159 service, which provides direct connection to official bank contact numbers.  
• If you have received an email which you’re not quite sure about, forward it to the Suspicious Email Reporting Service (SERS): report@phishing.gov.uk  
• Most phone providers are part of an initiative that allows customers to report suspicious text messages for free by forwarding it to 7726 
• Avoid clicking links or downloading attachments from unexpected emails or messages from a brand or business, unless you’re sure you know the origin. These could release malware onto your device or steal your bank details. It’s okay to ignore emails or messages that are unsolicited 
• Check the webpage is genuine. When online, make sure the webpage you are visiting is HTTPS protected or shows a padlock – both of which can be spotted in the domain bar. This indicates that it’s secure. You can also report a suspicious website via the National Cyber Security Centre. 
• Regularly check your credit report. This will help you to understand and protect your financial information. It can also help you monitor for potential fraudulent activity. If someone tries to use your identity, this is one of the places you’re likely to spot it. You can check your TransUnion credit report and score for free with Credit Karma, Credit Monitor from MoneySuperMarket, or TotallyMoney 
• Report fraud to Action Fraud if you think you’ve been a victim.  

For information on other UK Fraud trends, you can download TransUnion’s 2025 UK Fraud and Identity Report. 

Notes:

Unless otherwise stated, all figures are from a nationally representative sample of 2,180 UK adults aged 18+. The data was commissioned by TransUnion and conducted in June 2025 by YouGov.