Americans lost close to a billion dollars to AI scams in one year – and cybersecurity experts fear this is only the beginning.
Nearly $900 million was stolen in scams that incorporated AI in 2025, according to the first report of its kind from the FBI. The bureau also received more than 22,000 reports about such schemes to its Internet Crime Complaint Center.
One woman in California lost more than $5,000 when a scammer used AI to impersonate her daughter’s voice. Another woman in Ohio lost $1.5 million after fake FBI agents convinced her to drain her bank accounts.
Internet scams are not new; they’ve been around as long as people have been logging on. Fake Nigerian prince emails, phishing schemes and all types of malware have long been digital landmines for people surfing the web. But AI is now changing the cyber con game and costing Americans millions in the process — a number that is only going to grow as AI improves, which it does by the nanosecond.
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Michael Machtinger, deputy assistant director of the FBI Cyber Division, told the Wall Street Journal that AI-created fraudulent communications “can look very official and very legitimate to even the most trained individuals.”
An FBI report found that Americans lost nearly $900 million to scammers using AI in 2025. That figure is expected to rise (AFP/Getty)
‘Today’s AI is the worst AI you will ever use’
As AI companies pitch the public on the urgency of adopting their technology, criminals have been more than willing to heed that advice.
Like everyone else playing around with Claude, Gemini, Grok, and ChatGPT, scammers are still figuring out exactly what they can pull off using the chatbots, according to Jake Braun, executive director of the Cyber Policy Initiative at the University of Chicago’s Harris School of Public Policy.
He told the WSJ that as AI continues to improve, the means by which criminals can use it to bilk people out of their money will likely only get more sophisticated too.
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“The AI companies like to say that today’s AI is the worst AI you will ever use. What’s also true is that these are the lowest number of AI complaints we are ever going to see,” he told the paper.
Bob Sullivan, host of AARP podcast The Perfect Scam, explained in March that AI has helped scammers flood the internet with fraudulent offers and malicious schemes.
“We’re getting deluged,” Sullivan said. “A couple of years ago, you might have encountered one or two AI-generated scams a year. Now scammer call centers are sending out tens of thousands of scam messages per minute.”
Wide range of grifts
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Consumer protection agencies have collected long lists of all the various ways scammers are using AI to try to rip people off. Both California’s Department of Financial Protection and Innovation and New York City’s Consumer Worker and Protection agency have compiled lists of the methods criminals are using.
A new spin on an old grift is the use of deepfakes to convince people they’re talking to someone they trust — or someone they want to trust like a celebrity or a public figure — in order to convince them to send them money. AI scammers might deepfake a photo or a video of a relative in a tough situation or a celebrity as a means of establishing credibility.
Romance schemes follow a similar tack, using fake images or videos — or even voices — of attractive people or celebrities to convince a victim that they’re interested in them. Once trust has been secured, that’s when the scam hits. The account will then ask the person for money or assistance, and with people’s emotions clouding their judgment, they have been known to fork over thousands of dollars.
While some criminals seek to exploit concern for loved ones or a desire for romance, others appeal to greed.
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Criminals are using AI voice cloning, deepfake images and video generation to pose as celebrities or loved ones in an effort to steal from unsuspecting people (Getty/iStock)
According to law enforcement agencies, some scammers have created entirely fictional influencers to convince people to invest in fake businesses or to support their non-existent work.
The student told Wired that he used Google’s Gemini AI to create the fictional influencer and raked in thousands off the “super dumb” — in his words — MAGA crowd who ate up the rhetoric.
But it’s not just so-called “super dumb” people falling for AI scams. Advice, especially online, has typically been aimed at older Americans who may be less fluent in technology and unaware of the red flags associated with fraud. However, the new FBI report suggests broader messaging may be needed to teach a much younger group of Americans how to keep criminals out of their wallets.
Targeting teens
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According to the FBI, teens have become a prime target for scammers in recent years. The bureau reports that it received 31,000 complaints to its crime complaint center from people under the age of 20 last year. That’s up 74 percent from 2024 and is nearly triple the number of complaints it received from the same demographic in 2015.
Ade Clewlow, associate director and senior adviser at cybersecurity consulting firm NCC Group, told the WSJ that teens who have grown up online are more likely to trust what they encounter on the internet and “are just as susceptible as anyone else” to fraud.
Social media sites are especially useful for scammers because they allow them to peer into a target’s network of friends and family and search for vulnerabilities they can exploit.
Focusing on a target’s family was exactly how scammers managed to steal more than $5,000 from Deborah Del Mastro of San Francisco.
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Earlier this month, Del Mastro answered a phone call and received terrifying news; a voice on the other end of the call told her they had kidnapped her daughter, Sarah, and demanded a ransom.
She told Good Morning America that the voice told her there was “someone here that you need to talk to” before she heard her daughter’s panicked voice.
“I hear my daughter’s voice — sobbing, trying to breathe, having a panic attack,” Del Mastro said. “And [the voice] says, ‘I’m so sorry, Mom. I am so scared. I’m so sorry.’”
The kidnappers demanded she send $5,400 to multiple locations in Mexico if she wanted to see her daughter again. She obliged, fearing for her daughter’s safety. Once she had hung up with the kidnappers, she called her daughter only to find that she was fine.
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Del Mastro realized then she’d been scammed, likely by an AI clone of her daughter’s voice.
Scammers have already used deepfakes and voice cloning to steal thousands — and in one Ohio case, more than a million dollars — from victims (Getty/iStock)
Erin West, founder of Operation Shamrock, an organization focused on combating scammers, told KGO that even seconds-long audio clips of a person’s voice — like what might be included in a video shared to Facebook or Instagram — can be used to create believable voice clones.
“What they can do with just a few seconds of your voice [is] they can clone it, and they can essentially produce sound that sounds exactly like you,” she told the broadcaster, adding that AI voice cloning is “only getting worse, and it will only continue to get worse with the use of AI and deepfake technology.”
Another woman in California fell victim to a similar scam. When Abigail — no last name given — received a Facebook message from someone claiming to be Steve Burton, a longtime star of the legendary “General Hospital” soap opera, she readily accepted the message.
The two chatted, moving their conversation from Facebook to WhatsApp. Their conversations continued, and eventually Abigail received a video from the person claiming to be Burton. The man in the video — who looked and sounded just like the soap star — called Abigail “my queen” and promised to love her.
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Abigail’s daughter, Vivian Ruvalcaba, told Fox News that she saw the video and warned her mother it was AI, but her mother was convinced it was real.
Before she realized it was all a lie, Abigail had sent the fake Burton $81,000 and sold her condo — at $200,000 under its estimated value — on a promise that she and the faux celebrity would run away together to live in a beach house.
If impersonating loved ones or celebrities isn’t bad enough, fraudsters have also used AI to more convincingly impersonate government workers.
Scammers and disinformation peddlers can use deepfakes — enhanced by AI technology — to make convincing clones of politicians, celebrities, and even loved ones with as little as a few photos or video clips posted online (AFP/Getty)
Fake government officials
The FBI’s report found that government impersonation schemes are becoming not only more prevalent but more sophisticated. The bureau’s complaint center received more than 32,000 calls last year about government impersonation schemes, up from around 17,000 in 2024.
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“What began as clumsy phone calls from fake IRS agents demanding gift cards has evolved into something far more sophisticated and far harder to dismiss,” Judson Dressler, director of the risk operations center at cyber risk company Resilience, told the WSJ.
Fraudsters use spoofing to make their calls appear legitimate on caller ID systems; lift official seals and logos off agency websites; and employ AI deepfake audio and video to create convincing fakes of public officials, Dressler said.
One 93-year-old woman in Ohio reportedly lost $1.5 million to a government impersonation scam when a fake FBI official convinced the woman that criminals were targeting her assets. They warned her she needed to drain her bank accounts and deposit the money into crypto ATMs for safety. The thieves took the money, with no means for her to recover her savings.
In 2025, Consumer Reports delivered a petition signed by 75,000 Americans to the Federal Trade Commission asking it to hold companies that produce products capable of AI voice cloning accountable for the scams made possible by the technology.
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Staying safe in the age of AI
As AI improves, it will become increasingly difficult to know not only what information is real, but whether the people you’re talking to online even exist.
In an effort to better educate the public on the latest methods fraudsters are using, the FBI has bolstered its resources available on IC3.gov.
One way Americans can protect themselves from digital scams is to always verify that the person they’re communicating with is legitimate. If someone calls or messages from a government agency, for example, it’s good practice to call the agency directly to verify the identity of the person.
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There’s almost never a time when an agency or company needs immediate payment. If someone contacts you demanding money immediately, that’s a good time to pause and verify, according to the FBI.
According to Navy Federal Credit Union, which released guidance for avoiding AI scams earlier this year, Americans may also want to limit how much of themselves they share online. AI needs very little — a few photos, a few seconds of voice — to create a compelling clone that can be used against your loved ones.
If you suspect you’ve been a victim of a scam, you should act quickly and notify your bank, as well as file a report on IC3.gov. Machtinger told the WSJ that reporting is crucial to stopping fraudsters.
“It could help you and prevent numerous other individuals from falling prey to similar kinds of criminal activity,” he said.
The ex-Love Islander, TV presenter, showjumper and daughter of footballer Michael Owen took part in the annual Goodwood event featuring 12 part-time riders
Gemma Owen finished fourth on her jockey debut when she took part in the Markel Magnolia Cup on Thursday, the annual charity race run at Goodwood.
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The influencer, international dressage rider and daughter of former England and Liverpool striker Michael Owen was one of the star names among the dozen women chosen for the popular event.
Owen prepared for the race at her Dad’s Manor House racing stables in Cheshire, guided by the former top professional jockey Franny Norton. Manor House’s trainer Hugo Palmer supplied her mount who was named Turbo Trotter for the day. But when the race started Gemma was left behind and by the time she got going, she had too much ground to make up on the leaders as she finished fourth.
“It was an amazing experience from start to finish,” she said. “He was an angel and he really looked after me, but that flag start is different as everyone’s bunched together and cutting each other up.
“My start wasn’t great; I got boxed in, but he travelled well, made up some good ground and finished strong. If I’d have a better start, it’d have been a different result.”
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She added: “I think I’ll go again. I want to win now, and I’ll probably end up doing another race so I can get that first place.
“Dressage is very concise and slow, and that was the complete opposite. Everything happened so quick, but I don’t know which one I prefer.
“I’ve loved the training and riding out, and seeing what goes on behind the scenes makes you appreciate the hard work that goes into it. I’ve a new found respect for jockeys, and I appreciate the sport a lot more since doing it. I’m never happy not winning, so you’ll see me back.”
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Victory was claimed by Imaam Rasul-Healer on Khor Al Adaid, trained by Scott Dixon. The 26-year-old who works at Kia Joorabchian’s Amo Racing yard in Newmarket only got a place in the race six days earlier after Molly Hunter, a reporter for the Press Association, was ruled out by illness.
“I had not done too much prep, got on him for the first time last Friday,” she said. “I’ve been in the process the whole way but at every single fitness test I seemed to be ill, or something was wrong.
“Then I fell off a two-year-old filly, hit my head, got a concussion and wasn’t allowed to do my final fitness test. I got the call last week and thankfully was fit to step in.”
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The race has raised more than £75,000 for Education Above All Foundation, a global education non-profit.
She added: “I’m only the second Muslim to win this and charity is a huge focal point of our religion.”
A court has heard Bush breached the trust placed in him by grieving families “on an almost industrial scale”, by keeping bodies for months after they should have been cremated, giving out the wrong ashes, taking money for funeral plans without making any of the arrangements, and stealing charity donations collected at services.
Some victims of disgraced undertaker Robert Bush have not been refunded for fake funeral plans he sold to them, a court has heard.
The 48-year-old defrauded 172 people over 11 years to the tune of £562,000, Hull Crown Court was told.
He previously admitted 67 offences in relation to his business, Legacy Independent Funeral Directors in Hull, including failing to bury and cremate people, theft from 12 charities, fraudulent trading in funeral plans, and fraud.
On the fourth day of his sentencing hearing, one woman said her parents, who paid £2,649 each for funeral plans, were not alive “to see the justice they deserved”. Another said she had not been refunded £5,000 for two policies.
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This story contains details some might find distressing.
Wiping her eyes with a tissue, Maxine Hill told Mr Justice Hilliard the bank refused to refund the money fraudulently taken by Bush, whom she knew personally.
Bush visited both her parents, Margaret and John, in their own home and issued a handwritten receipt to her mother who paid him in cash.
The bank initially refunded the amount paid by Hill’s father but 90 days later, the bank took the money back saying “there was no evidence that he hadn’t received a product”, the court heard.
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Both have since died – Margaret in May 2024 and John in June 2025.
If you’re looking for a curve-friendly wedding guest dress, Alison Hammond has answered with her latest This Morning outfit – a £65 polka dot maxi dress that ‘feels luxurious’
This article contains affiliate links, we will receive a commission on any sales we generate from it. Learn more
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The search for a great wedding guest dress can be a tricky one, especially if you fall into the plus size category, but more high street brands are now expanding their sizing range to be inclusive. A perfect example is Next, which now offers most of its clothes in sizing ranging from six to 26.
The Next Satin Maxi Dressis available in sizes six to 26, as well as sizes 10-20 in the tall range – although some sizes are selling out quickly. As well as Alison’s chocolate brown polka dot print, it also comes in champagne, navy blue and dark green, and it’s just the right combination of luxurious and elegant without being too extravagant.
To make the dress more daytime TV-friendly, Alison paired her dress with a pair of chocolate brown and bronze Anais Pointed T-Bar Flatsfrom Air & Grace, but for evening events and formal occasions, a pair of metallic heels and a statement clutch bag would instantly elevate it. You could even pack it for your next holiday, styling it with some gladiator sandals and a statement necklace for evenings out.
It comes in a lightweight satin material with a hammered finish, which gives it a luxe-look, and features a ruched knot detail around the waist which creates a flattering silhouette. The Next Satin Maxi Dressalso has wide, flared sleeves for some added drama, and a rounded neckline.
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There are some other beautiful occasion dresses to shop right now too, including this £129 Green Diamond Print Toria Dressfrom Never Fully Dressed which is available in sizes six to 28, with a gathered front and draped sleeves. Alternatively, ASOS’ Draped Long Sleeve Cross Front High Neck Satin Maxi Dresswhich comes in a beautiful green shade for £65, with cape-style sleeves and a draped column silhouette.
However Alison’s Chocolate Brown Spot Satin Maxi Dressis a hit with shoppers, with one person saying: “Gorgeous dress, feels very luxurious and will be perfect for the wedding I’m attending this autumn.”
Another agreed: “The style is very flattering to the “fuller figure”, whilst a third added: “I bought this dress to attend an awards dinner & ceremony and it was great. A lovely rich colour and very flattering and elegant.”
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One Next shopper did say, however: “This is a beautiful dress, but really quite heavy weight. More suitable for a autumn/ winter party, not 30 degrees plus summer evening, so regretfully returned.”
And another complained: “Very disappointed for a dress of this price I would have expected better. The design was large polka dots but the were not matched properly and this was very noticeable at the front.”
However, others loved it, saying: “These dresses are beautiful, flattering, drape beautifully, lovely material, lovely colour (navy) and best of all a really good price, look far more expensive than they are.”
A drone strike ignited a fire that engulfed two gas vessels at Egypt’s Mediterranean port of Damietta, the Egyptian cabinet confirmed on Thursday, stating the blaze was the result of an attack rather than an accident.
The incident, which occurred near the strategically vital Suez Canal – a crucial evacuation route for Saudi oil to global markets – has yet to be claimed by any party.
Authorities have launched an investigation and are implementing measures to safeguard Egypt’s national security. British maritime security firm Ambrey had initially assessed on Wednesday that a drone struck a US-owned gas storage tanker at the port, raising concerns about a potential escalation of conflict across the Middle East.
Trading sources familiar with the event identified the affected vessels as the floating storage tanker Energos Winter and the Gaslog Salem, with the fire reportedly starting on the starboard side of the Energos Winter before spreading.
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The drone attack unfolded shortly after Iran launched a missile strike against US forces in Jordan, and following retaliatory actions by Washington and Saudi Arabia against Iran-backed paramilitary groups in Iraq.
President Donald Trump had threatened retaliation against Iran after they launched a missile strike against US forces (AP)
US president Donald Trump had threatened retaliation against Iran, while Yemen’s Houthi group declared a naval blockade on Saudi Arabia, indicating a widening of the conflict since the US and Israel began bombing Iran in February.
Egypt’s petroleum ministry confirmed on Wednesday that the fires were swiftly brought under control by firefighting and security teams, with no injuries or fatalities reported. Petroleum Minister Karim Badawi visited the site to oversee the response efforts.
The Energos Winter, a floating storage and regasification unit, is owned by US-based Energos Infrastructure and managed by Wilhelmsen Ship Management, a Singapore-based subsidiary of Norway’s Wilhelmsen Group.
The incident arrives at a sensitive juncture for Egypt’s gas market. Having become an LNG exporter following the development of the giant Zohr offshore gas field, Egypt has recently reverted to being a significant LNG buyer due to declining domestic production and surging demand. Any prolonged disruption could significantly impact LNG traders, affecting demand and spot prices.
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Sources indicate that the vessels are expected to remain out of service for an extended period, with one reporting a breach in a tank on the Energos Winter, potentially prolonging repair work.
The Energos Winter possesses a regasification capacity of approximately 450 million cubic feet per day, which accounts for roughly 7 per cent of Egypt’s daily gas consumption and 16 per cent of its total LNG receiving and regasification capacity, according to Egyptian consultancy ElAdl Studies.
While the outage is not anticipated to create an immediate supply gap, given Egypt’s alternative import facilities and fuel options, it will reduce spare capacity during a period of peak summer demand.
Potential mitigation strategies include maximising other regasification units, increasing the use of fuel oil as a backup, tapping into renewable energy capacity, and, as a last resort, temporarily reducing gas supplies to certain industrial sectors.
KUALA LUMPUR, Malaysia (AP) — Malaysia has started documenting and screening thousands of detained Myanmar nationals as part of a repatriation program agreed with Myanmar, Home Minister Saifuddin Nasution said Thursday.
Saifuddin said Myanmar had committed to accept up to 5,000 of its citizens currently living in Malaysia and an unspecified number currently in Cox’s Bazar, a town in south east Bangladesh.
Malaysia had identified up to 4,000 Myanmar nationals in its 19 detention depots, who will be moved to a single site for security screening and documentation purposes, he said.
“We will certainly meet the target of 5,000 individuals once this process is complete,” Saifuddin told to reporters, adding that the foreign ministry will handle the next stage of the repatriation process with Myanmar.
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Prime Minister Anwar Ibrahim had said Wednesday that those being repatriated were Rohingya refugees.
“People ask why we do not simply send them back. Send them where? Myanmar had refused to accept them before. Now, because of our good relations with Myanmar, they have agreed to take back 5,000 from Malaysia,” Anwar was cited as saying by the New Straits Times.
However, Saifuddin, who did not explicitly identify the 5,000 individuals as Rohingya, said only Myanmar nationals with refugee status were being repatriated.
Foreign ministry officials could not be immediately reached for comment.
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Mohammed Mizanur Rahman, a commissioner for refugee, relief and repatriation in Cox’s Bazar, told The Associated Press by phone that he was not aware of any repatriation of Rohingya from Bangladesh.
In Naypyitaw, the capital of Myanmar, officials also rejected reports that the government would accept Rohingyas.
Han Win Aung, director-general of the ASEAN department at Myanmar’s Foreign Affairs Ministry, said the repatriation program was focused solely on verified Myanmar nationals currently held in detention centers in Malaysia.
Myanmar, formerly known as Burma, does not recognize the Rohingya as one of the country’s 135 lawful ethnic minorities, instead referring to them as Bengalis to imply they are natives from Bangladesh and are illegally settled in Myanmar.
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“This is not about bringing back Bengalis. There are Myanmar nationals who are being held in detention centers in Malaysia for various reasons,” Han Win Aung told the AP. “Both sides are still at the stage of coordinating to repatriate only those whose identity as genuine Myanmar citizens has been verified.”
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He said the plan follows earlier repatriation operations in 2021 and 2022, when Myanmar received more than 1,100 of its nationals stranded in Malaysia.
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Han Win Aung said the number of people to be repatriated and the timeline for transfer remain under discussion.
Malaysia is home to about 215,600 refugees and asylum seekers registered with the U.N. refugee agency, including about 126,000 Rohingya who make up one of Southeast Asia’s largest refugee community. Despite hosting them, Malaysia is not a party to the U.N. Refugee Convention and treats refugees as undocumented migrants.
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Journalists Julhas Alam in Bangladesh and Grant Peck in Bangkok contributed to this report.
Money worries can keep us up at night, but could decades of financial stress leave a lasting mark on the brain itself? That’s the question my colleagues and I set out to answer in a new study – and the answer, it turns out, is yes.
Most research on money and brain health looks at people’s financial circumstances at just one point in time. This makes it hard to know whether a few difficult years have the same effect as decades of enduring struggle. For our study, published in the journal Innovation in Aging, we tracked the same people throughout their adult lives to find out.
We used data from the MRC National Survey of Health and Development, also known as the 1946 British birth cohort study. A cohort study follows a group of people born in the same period throughout their lives. This is the world’s longest continuously running study of its kind, tracking thousands of people born in one week in March 1946 – participants who celebrated their 80th birthdays earlier this year.
The study’s origins go back to the economic anxieties of the 1930s, when the Great Depression left many families worrying about money and the cost of raising children – making it a fitting dataset to revisit those same questions decades later. Using this rich resource, we examined the financial circumstances of 2,759 participants at multiple points across adulthood.
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Participants reported their household income at ages 26, 43 and 53. We classed those in the bottom 20% of the group on at least two of these occasions as having persistent low income – about one in six people. Separately, we measured financial hardship by asking whether people struggled to manage on their income or had trouble paying bills, at least twice between ages 36 and 53. This applied to about one in eight.
At age 53, participants took tests of verbal memory and processing speed. A smaller group also had brain scans between ages 69 and 71, which let us measure brain atrophy (shrinkage) and ventricular expansion – the widening of fluid-filled cavities within the brain, a recognised marker of poor brain health.
We found that people who had experienced more financial hardship and low income scored lower on the cognitive tests at age 53. These links held even after we accounted for their childhood thinking skills, education and childhood disadvantage. Among those who had brain scans, persistent low income was linked to greater brain shrinkage in later life.
People who had faced more financial hardship tended to perform worse on cognitive tests. Microgen/Shutterstock.com
When we looked at how memory changed from age 53 to 69, those who had faced persistent hardship actually showed slower decline over that period. We believe this is because they had already lost more ground by age 53 – they started from a lower point, so there was less left to lose.
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We also found that the link between financial adversity and brain shrinkage was stronger for men, for those who grew up in disadvantaged homes, and for carriers of a gene that raises the risk of developing Alzheimer’s disease.
For men of this generation – born in 1946, when the male breadwinner model was the norm – the pressure of being the main earner may have made financial stress more acute. Disadvantaged men also had higher rates of smoking and drinking than disadvantaged women.
The finding on genetic risk suggests that people who are already biologically vulnerable may be more susceptible to the effects of financial strain. These subgroup findings are based on smaller numbers within our sample, so we are treating them as suggestive rather than conclusive.
We acknowledge that our study cannot prove cause and effect, and the results, drawn from a single generation of British adults, may not apply directly to other populations or countries. But following the same people over many years gives us a clearer picture than studies that only look at a single moment in time.
Financial hardship is increasingly recognised as one of several factors – alongside things such as hearing loss, smoking and physical inactivity – that may shape our risk of cognitive decline in later life. Our findings suggest that reducing chronic financial hardship among working-age adults, wherever they live, could help protect brain health and potentially reduce dementia cases in the future.
PRAGUE (AP) — Keepers at Prague Zoo used tons of ice on Thursday to give its animals some much-needed relief as yet another heat wave hit Europe.
Polar bears Aleut and Gregor wasted no time and were rolling in the beds of ice cubes after entering their outside enclosure.
The twins looked to have fun with the ice treat that was meant to keep them cool amid the extreme temperatures forecast to soar to 38 degrees Celsius (100.4 degrees Fahrenheit) later in the day.
“The bears cool off with it and at the same time it’s an enrichment of their life in the zoo,” said zoo spokesperson Filip Mašek.
The polar bears, who were born in Nuremberg, Germany, 16 years ago and have adapted to the European climate, were the ones who enjoyed it the most.
This year, the plan was to order ice for the animals in July and August, which are traditionally the hottest months. But the first heat wave struck early and the Czech Republic experienced its hottest day ever with 41.9 C (107.4 F) on June 28.
“The weather keeps surprising us,” Mašek said. He said the ice will be ready sooner next year. “We’ve been taught a lesson.”
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Other animals that have benefited from the provision of ice to keep cool in previous years include otters, elephants and parrots.
Some animals in the zoo are used to heat, others could stay in the shade or inner enclosures and use various pools to keep cool. Gorillas were given pieces of ice with frozen fruits in the previous years.
As Edinburgh introduces a visitor levy this week, we look at what a decade of tourist tax-funded investment has done for one of Europe’s most infamous resorts
It is a bright early summer evening in Mallorca and Jaime Mora Bosch is reclining in a waterfront restaurant in a cream suit. Behind him, Port Adriano is filled with multimillion-euro yachts as their passengers settle into restaurants overlooking the marina, where rosé and mineral water are being poured.
Mora Bosch is director of tourism for Calvià, a district of mountain trails, luxury resorts, exclusive harbours… and Magaluf, the resort with a reputation as the place where Britons go abroad to behave badly.
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Cheap lager, sunburn, public nudity, stag dos and hen parties turned ‘Shagaluf’ into a tabloid genre of its own. Mora Bosch insists that picture is years out of date and argues that the tourist tax introduced a decade ago has helped drive that change.
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“If you’re in Magaluf tonight, yes, you will find some people drunk, you will find some British people without a T-shirt, maybe swimming, maybe drinking in the streets,” he says. “But in general it has nothing to do with the past.”
From Port Adriano, Magaluf is only a short drive away, but the contrast is immediate. On Punta Ballena, the street universally known as the strip, music pounds from open-fronted bars as scantily dressed women try to entice groups of men inside with promises of cheap booze.
A group of men in their early 20s, here for a stag weekend, offer grins and gestures when I ask why they chose Magaluf. A party of women from Sunderland celebrating a friend’s engagement give roughly the same answer. What is striking, though, is how dated the strip feels. There are plenty of groups of young adults, but also a surprising number of 40- and 50-somethings who seem to be trying to relive their youth, many of them accompanied by their bored-looking teenage children.
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Several premises are boarded up, while others have the sticky, faded air of places waiting for one final summer. The soundtrack leans heavily towards ’90s dance anthems. At around midnight on Saturday, we walk into Joker’s, a karaoke bar just behind the main strip, and find ourselves its only customers. Sam, an English DJ in his 60s, is waiting beside a dancefloor on which nobody is dancing. “I came over in the 1980s and never left,” he says. “Why would I?”
A few families eventually arrive with children younger than you would expect to find in a bar at midnight, but the room remains fairly empty. The larger clubs still pull crowds and the strip is certainly bustling, but groups of revellers seem to be searching for ‘the place to be’ – a place that perhaps no longer exists.
On the waterfront promenade, just a block away from the strip, are well-presented hotels, fashionable beach clubs and fine-dining restaurants serving families, couples and older visitors. The two versions of Magaluf remain close enough to hear each other, but they are growing increasingly distant.
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The promenade in Magaluf was built using tourist tax funding. Image: Calvia Tourism
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The strip’s faded air reflects changing tastes, but its decline is also the result of a deliberate effort to diversify the tourism model that created it.
That model took shape in the 1960s, when Mallorca opened up to mass travel and hotels rose at extraordinary speed. Dennis Saro, a local guide, has watched Calvià wrestle with the consequences. “We made a lot of mistakes at this time in the 60s,” he says. “We started building, building, building… and we didn’t think about the future. This is what we are fixing now.”
By the 1990s, Magaluf had a reputation for cheap booze, cheap rooms and being a resort where rules did not apply, where almost anything went.
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The moment that forced the authorities to confront its reputation arrived in 2014, when a video showed a young British woman performing sex acts on multiple men in a bar as part of a drinks promotion. It travelled around the world, becoming a brutal advertisement for Magaluf’s tourism economy. “It used to be a lawless city,” says Mora Bosch, who says it was at that point that the authorities knew something had to be done.
Calvià restricted pub crawls, street drinking and alcohol promotions. Shops in designated ‘excess tourism’ areas were banned from selling alcohol between 9.30pm and 8am. Noise rules were tightened and police inspections increased, while many venues began opening earlier as daytime clubs.
The Balearic Sustainable Tourism Taxfollowed in July 2016, charging visitors according to their accommodation and the time of year. By July 2025, close to 300 projects worth almost €850m (£730m) were being financed through the programme.
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Newly developed hotels have sprung up across Magaluf. Image: Calvia Tourism
“The main aim of the tourism tax is to compensate for the impact generated by tourist activity,” says Miguel Rosselló Jiménez, tourism co-ordinator at the Balearic Islands’ ministry of tourism, culture and sport. “It helps fund projects to improve the destination, making it more sustainable in environmental, social and economic ways.”
The levy funded investment in public spaces, water infrastructure and cultural projects. Alongside private investment, EU funding and political support, it became part of a wider effort to rebuild and rebrand the region.
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Magaluf’s beachfront now has a bright promenade linking the hotels, restaurants and waterfront. There is level paving, planting, seating and room for buggies and wheelchairs. Native plants and reclaimed water reduce pressure on local supplies, while beach showers use seawater. The €3m (£2.5m) second phase, completed in May 2026, was funded entirely through the tourism tax.
The space feels safe, open and easy to use, more in keeping with the waterfront at Port Adriano and other parts of the island. Nearly every venue I pass is serving couples and families. There are groups of men and women, but most are restrained rather than rowdy.
The official inauguration of Magaluf’s promenade in June 2026. Image: Calvia Tourism
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By 11pm, most of the larger groups make their way towards the strip as almost all the venues on the waterfront close or prepare to shut. Staff know inspections will check whether alcohol service has stopped on time, whether music has crept above the permitted level and whether customers are smoking where they should not be.
For residents, better paving and calmer evenings only go so far if tourism still consumes the places where they live. Marta, a Calvià resident, supports the move away from sheer numbers, although she understands why some neighbours have lost patience altogether.
“We want more quality and less quantity,” she says, adding that many locals “just want to be able to go to a beach and find a spot”.
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The campaign to diversify tourism has also involved broadening the range of hotels on offer. BH Mallorca, once one of the main engines of the resort’s 18-to-30 economy, was bought by the Mallorca-based Fergus group and its partners, with around €20m (£17m) committed to dividing the complex into three hotels aimed at families and higher-spending visitors.
Nicky Beach on Magaluf waterfront has replaced many older bars. Image: Calvia Tourism
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“They used to specialise in drunk-tourism – the 18-to-30 market,” says Mora Bosch. “They’d have 1,200 people in this hotel, and you might find 3 or 4 people in a room … But two years ago Fergus bought it, a local brand who specialise in family activities, and we’ve seen a huge difference. The change is everything.”
Richie Prior arrived as a holiday rep in 1990 and is now managing director of Pirates Adventure, one of Magaluf’s longest-established attractions. Writing recently about the changes, he said Mallorca had “changed dramatically” and added: “Personally, I think it’s a positive move,” pointing to improved hotels, restaurants and a more international crowd.
The authorities argue that fewer visitors spending more can create greater economic value with less pressure on streets and emergency services. “Fewer people but their per head spend is a lot more,” says Mora Bosch.
That strategy has been helped by broader changes in habits. Younger adults drink less, the cost of living makes indiscriminate spending harder, and many visitors now want a better room, a decent meal and somewhere attractive to share on social media. As Mora Bosch puts it, people increasingly want to show off, a shift reflected in the designated ‘selfie route’ created along the promenade.
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We just want to be able to go to a beach and find a spot
That does not mean Magaluf wants to stop young people from coming and letting off steam as this is still a major part of the local tourism economy. Stag and hen parties still arrive and the major clubs continue to buzz, but it feels as though Punta Ballena’s heyday is behind it. Calvià council has bought 11 obsolete commercial premises in the area, using a €6m tourism tax grant to acquire, demolish and redevelop them. The scheme will remove unsafe buildings and return the land to public use, while the fading bars suggest the market may be retreating.
Calvià is also creating reasons to visit that do not depend on nightlife. The council plans to restore the 16th-century Torre de Torrenova and turn neighbouring buildings designed by local architect Josep Ferragut into an international artists’ residence. It is one of several physical and cultural projects under way, including the restoration of the Galatzó public estate, the development of Puig de sa Morisca archaeological park, a series of refuges for walkers, a film-location trail, a €10,000 literary prize and Conecta Magaluf, which recently brought together 400 film and television professionals from 29 countries.
Nearly 2,000 kilometres north, Edinburgh is beginning an experiment of its own. Since 24 July, the Scottish capital has charged visitors 5% of the pre-VAT accommodation cost for the first five nights, becoming the first UK city to introduce a mandatory city-wide visitor levy.
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The 16th-century Torre de Torrenova will be turned into an international artists’ residence. Image: Tom Pattinson
The levy is expected to raise up to £50m a year by 2028-29. Of the available funds, 55% will go to city operations and infrastructure, 35% to culture, heritage and events, and 10% to destination management. The first three-year programme is worth more than £90m, including funding for Leith Theatre, public toilets, historic streets and an annual £5m housing and tourism mitigation fund.
An early consultation found that 85% of respondents strongly supported a levy, although the final 5% rate proved more divisive. Hospitality businesses argue that Edinburgh is already expensive and that visitors may spend less elsewhere.
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Tony Lankester, chief executive of the Edinburgh Festival Fringe Society, supports the principle while warning that the festival needs to see a tangible return. “At its most basic level, I think the tourist tax is a good thing because for too long the impact of tourists… has been borne by the people who live here,” he told The Stage.
Magaluf’s challenges are very different from Edinburgh’s: visitors come to the Scottish capital for its heritage and world-famous literary and arts festivals, but in both places the costs of mass tourism are often left for residents to absorb. Calvià shows that a tourist tax, combined with private investment, regulation and political will, can help transform a destination. It did not save Magaluf by itself, but it has helped the resort build a future in which it may no longer need saving.
Main image: Calvià Tourism
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Four people died trying to cross the Channel in small boats overnight, French officials have said.
One man died after a vessel capsized off France’s northern coast late on Wednesday, with a one-year-old child among those injured.
Separately, three people were found dead aboard a small boat early on Thursday after launching from Dunkirk overnight, some 100km (62 miles) up the coast.
French officials confirmed their deaths after several hundred people crossed the Channel into the UK on Wednesday.
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The first boat capsized off the coast at Hardelot around 23:30 local time (21:30 GMT) on Wednesday.
The man is thought to have been in his thirties or forties, officials added. Six other people including the child sustained minor injuries.
Security officials “neutralised” the boat and an investigation into the incident has been launched.
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The second boat launched from the Dunkirk area overnight and was spotted near a breakwater off the coast at 06:00, the French coastguard said.
Search and rescue officials subsequently found three unconscious people on board. Their deaths were later confirmed by emergency medical personnel.
A UK government spokesperson said: “Every death in the Channel is a tragedy and a stark reminder of the dangers posed by criminal gangs exploiting vulnerable people for profit.”
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