Over 40 per cent of Malta’s highest earners have fallen victim and lost money to online scams, a new study has found. The study, conducted by Prof. Vince Marmara of Sagalytics, found that 40.5% of respondents in the highest income tax bracket reported losing money to scams. This vulnerability extends to those with higher levels of education as well, with 24.3% of victims holding a tertiary level of education. The study attributed the trend to their greater exposure and frequent use of digital platforms like online banking, Revolut, Apple Pay and Google Pay, which increases their chances of being targeted by fraudsters. Nonetheless it does challenge common stereotypes that scam victims are usually uneducated, low-income classes. The survey was carried out last month and interviewed 600 individuals aged 16 and over. It asked people whether they are aware of these scams, whether they had ever been targeted by one and how the scam reached them. They were also asked at which point they realised it was a scam, to what extent they communicated with the scammer, what gave it off as a scam, what they did when they eventually realised that it was a scam and whether they lost any money in the process. It was commissioned on the initiative of the Office of the Arbiter for Financial Services (OAFS) and TVM programme Illum ma’ Steph. Geoffrey Bezzina, an official at the financial services arbiter’s office, said it is misguided to think scams only affect the elderly or the less tech-savvy. Scammers are increasingly exploiting online platforms, which is where the wealthiest and most educated often are. “The reality is that scam tactics are so advanced that anyone can fall for them. Which is why everyone should be extremely vigilant when engaging on social platforms and encouraged to invest on online platforms,” he told Times of Malta in reaction to the survey results. “Everyone, no matter how experienced, should treat financial security as a lifelong commitment. We need to encourage regular conversations and learning, because anyone can be caught off guard.” Problem appears widespread The study found over half the population (58.5%) reported being targeted by scammers. Eight out of every 10 of them said they realised immediately the attempt was fraudulent. The most common scam attempts were through phone calls (54.0%) and SMS messages (53.3%). Seven out of every 10 people who communicated with a scammer did so only once before realising it was fraud. People realised it was a scam mostly when they were asked to send money or personal information, followed by suspicious messages, links and emails and calls from foreign numbers and individuals with foreign accents. But while a high level of general awareness about financial scams exists –with over 72% of people familiar with the term – a considerable 15.8% of targeted individuals still suffered a financial loss. Awareness around financial scams is notably lower among the elderly (66+) and residents of the Northern Harbour district (Birkirkara, Gżira, Qormi, Ħamrun, Msida, Pembroke, San Ġwann, Santa Venera, St Julian’s, Swieqi, Ta’ Xbiex, Pietà and Sliema). The South Eastern district (Birżebbuġa, Gudja, Għaxaq, Kirkop, Safi, Marsascala, Marsaxlokk, Mqabba, Qrendi, Żejtun and Żurrieq) was the least affected by financial losses. Women slightly more susceptible People aged 36-45 were the most susceptible, with 33.3% in this age group reporting financial losses, and female respondents were slightly more vulnerable, with 17.8% reporting losses compared to 13.7% of men. Furthermore, younger demographics, particularly 26-35-year-olds, were most likely to receive investment approaches on social media (57.9%) and reported social media messages or comments as a frequent form of scam attempt. The majority of victims (83.6%) lost less than €1,000. In six out of every 10 cases, the money was stolen through unauthorised payments. Almost 80% said their money was only stolen once but 10% said they lost money twice and another 10% fell victim more than twice. Earlier this month, Times of Malta reported that 3,300 individuals and businesses lost more than €32 million to various cybercrimes since 2022. Beyond romance scams, which defrauded 67 individuals of €1.7 million, other prevalent online frauds include investment scams (€5.6 million lost by 374 victims), e-commerce scams (€3.9 million lost by over 1,000 victims) and bank scams (€1.5 million lost by 1,200 victims). Far more victims went to bank than to police The survey found nearly 70% of individuals who lost money reported the incident to their bank, and, encouragingly, 77.1% of those who reported to their bank received a partial or full reimbursement. These figures stand in stark contrast to the significantly lower reporting rates to the police (36.2%) and the Office of the Arbiter for Financial Services (OAFS) (10.1%). The OAFS has been actively addressing the rise in financial scam complaints, which often result in substantial financial losses and emotional distress for victims. In response to these concerns, the arbiter issued guidelines in November 2023 on the shared responsibility between payment service users and providers regarding authorised push payment (APP) fraud. Furthermore, earlier this year, the arbiter released technical notes outlining the approach to complaints related to sophisticated relationship-based frauds, a type of scam that has seen a significant increase recently. Bezzina insisted financial literacy should be a continuous endeavour and urged people to question anything suspicious online “because scams will continue to evolve and become more sophisticated”. “One should not be ashamed to report to its bank and to the police when scammed,” he said. “Moreover, victims should not be shy to contact the office of the arbiter for financial services for information about our free complaint process.”