As technology advances, and we use more digital software to conduct our financial business, the more vulnerable we are to becoming a victim of financial crime. In the UK, it seems the wealthier you are, the more likely you are to become a target of scams and cybercrime.
This is according to the Saltus Wealth Index, a survey conducted by financial planning and investment management firm Saltus, on the views of high-net-worth individuals (HNWIs). It includes data from over 1,000 respondents, with investable assets of over £250,000 and a median net worth of £1.5 million. The survey covered a range of topics, including the economic prospects of the UK, views on their own financial and personal lives, as well as their experience of financial crime.
Amongst those surveyed, it was discovered that age, life stage and location have a considerable effect on how wealthy individuals feel, and what they’ve experienced — of which we’ll explore in this article.
Who is more likely to experience financial crime?
In simple terms, the younger generations and those with greater investable assets have experienced more cybercrime.
The research conducted by Saltus, found that almost half (49%) of all HNWIs surveyed have experienced a financial scam or cybercrime, in some form. Women are also slightly more likely to be victims of this, with 52% stating as such, compared to 48% of men.
With such staggering figures, it’s understandable how cyber security is one of the top concerns for individuals and businesses alike. It begs the question: how much can this impact our wealth?
According to the Sophos State of Ransomware Report 2021, cyber attacks can be expensive to fix, and the average cost of cybercrime for UK organisations is $1.96 million — placing the UK as one of the top eight countries in the world for total amount spent on cyber remediation.
In terms of the group most likely to be targeted by financial scammers, those with assets upwards of £2 million come out on top, as discovered by the Saltus Wealth Index. In fact, two-thirds of respondents in this group have been targeted, as opposed to just over one-third (35%) of those with assets between £250,000 and £500,000.
Breaking this down further, just over half (53%) of those with wealth between £1 and £2 million have been a victim. On the other hand, of those with assets between £500,000 and £1 million, 41% stated they had experienced this type of crime.
This also differs with age. The research conducted by Saltus found that 57% of those aged between 35 and 44 admitted to being scammed. However, only one in five (18%) of over 65s revealed they have been a target of scams and financial crime.
Cybercrime is amongst some of the top concerns for wealthy individuals, and could be a reason for underlying uncertainty and anxiety amongst HNWIs, and what they consider a risk to their wealth.
Disclaimer: Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested.