Most Maltese scam victims don’t know about dispute resolution service, study finds

Maltese consumers are increasingly being targeted by financial scams, but a recent study suggests that swift action can limit the damage, and in many cases, even lead to the recovery of stolen funds.

A survey by Professor Vincent Marmarà conducted by Sagalytics on the initiative of the Office of the Arbiter for Financial Services and TVM programme ‘Illum ma’ Steph’ found that 58.5 per cent of the Maltese population aged 16 and over have experienced an attempted financial scam. Worryingly, 16 per cent of respondents said they had suffered actual financial losses as a result.

Yet despite the dangers, the study also highlights a silver lining: 77 per cent of those who reported their losses to their bank were reimbursed, either partially or fully. However, a significant number of victims did not report their cases, either to banks, police, or the OAFS.

Banks help, but only if you report

The research underscores the importance of quick reporting. While 69.6 per cent of scam victims did lodge a complaint with their bank, only 36.2 per cent reported the scam to the police, and just 10.1 per cent filed a case with the Arbiter. Shockingly, more than half (58 per cent) of those scammed said they were unaware that the OAFS even existed.

The OAFS noted on LinkedIn: “Banks do help victims – 77 per cent of people who reported losses to their bank got some or all their money back, so always report immediately!” Police reports matter too, it adds, even though only 36 per cent filed them, these help build official records and strengthen future investigations.

Most losses were under €1,000, affecting 83.6 per cent of scam victims, though a small percentage lost between €1,001 and €5,000. The most common types of scams included unauthorised payments (58 per cent) and fake cryptocurrency investments (11.6 per cent).

While the financial damage may seem modest, the emotional and psychological toll should not be overlooked. The reluctance to report – especially to institutions like the OAFS – was often linked to feelings of embarrassment or uncertainty. Over 58 per cent of those who didn’t file a complaint with the Arbiter said it was because they simply didn’t know it was an option.

Perhaps most surprisingly, only 10 per cent of people who experienced scam attempts – but didn’t lose money – reported the incident to their bank. This, the study warns, represents a missed opportunity for financial institutions to improve fraud detection systems and protect other consumers.

Who’s most at risk?

The study found that people aged 36–45, those with higher incomes, and those using digital platforms were most likely to fall victim to scams. Gozitans and those with lower educational attainment reported the fewest cases of being approached for scams, especially on social media.

The findings suggest that greater public education is needed – particularly around the role of the OAFS and the importance of filing police reports. A clear majority of people still do not understand what steps to take if targeted or what services are available to support them.