Consumers have low trust in the internet as a tool for shopping for financial services
More than half of internet users (53%) do not trust that the adverts on search engines are placed by a legitimate financial services company or provider, according to Aviva research.
The insurer's Fraud Report - published today (24 August) - found consumers have "low trust" in the internet as a tool for shopping for financial services.
The report also revealed 56% of people do not believe that the authenticity of the financial product, service, or provider being advertised is verified by search engines.
Of those, Aviva found a difference in trust according to age, with just 29% of those over 55 trusting the results of a search engine compared to 59% of those aged 16 to 24.
The firm also said the Covid-19 pandemic has "accelerated the need for action" as 50% of people admitted they used the internet more frequently to search for products and services over the last year than previously.
"The scale of fraud has accelerated through the coronavirus pandemic, which has resulted in a deluge of opportunities for fraudsters over the last year," Aviva said as its research found 42% of people have been targeted by a Covid-19 scam.
That is a 91% increase over the last year in the number of people who reported receiving emails, texts, phone calls and other communications mentioning coronavirus, and which were suspected to be a financial scam.
The report also found most people (87%) think the government should legislate to ensure search engines and social media sites do not mislead consumers or promote financial scams and 85% think search engines should be responsible for advertising content on their platforms so that it is not misleading.
Aviva has also called on the government to include financial scams in the scope of the Online Safety Bill more specifically.
It comes after the Online Safety Bill was given the greenlight in May, with the legislation to boost internet saving initially leaving out economic harm.
However, in a statement alongside a draft of the bill on 13 May, secretary of state for digital, culture, media and sport Oliver Dowden said user-generated fraud would be brought into the scope of the regulatory framework.
But Aviva fraud prevention director Rob Lee said there is a "clear mistrust" of financial services adverts online, but noted there is no responsibility for technology firms to verify the legitimacy of the companies which pay them to publish adverts on their platforms.
He said this could potentially leave "millions of internet users exposed to unscrupulous adverts".
"We believe the Online Safety Bill presents an opportunity to protect financial services consumers at every stage of their online journey. We welcome the recent inclusion of user-generated fraud - such as that promoted on social media sites - within the scope of the regulatory framework. We support the financial services industry in calling for the legislation to include financial scams promoted by paid-for adverts," he said.
Lee added: "The challenges posed by lockdown conditions has shifted the mind-set of millions, opening the door to more people buying financial services and products online. While this brings opportunities for making it easier to buy products, it does also open the door to fraudsters looking to prey on the vulnerable.
"It's clear we're a long way from the government's commitment to making the UK the safest place in the world to be online. The current online environment combined with challenging economic conditions and increased financial strain on consumers is creating the perfect storm for fraudsters to exploit the most vulnerable.
"Government must act quickly to protect more consumers from becoming the victim of online fraud, by ensuring financial scams are included in the Online Safety Bill."
