Investment Fraud 

Over £649m lost to investment fraud within the UK in 2024, with cryptocurrency fraud on the rise.

Data from Action Fraud reveals that people aged 35-44 were more likely to be targeted for investment fraud, while those aged 55-64 suffered the greatest financial losses.

Investment fraud occurs when criminals approach individuals, often out of the blue, and persuade them to invest in schemes or products that are either worthless or entirely fictitious. Fraudsters may claim to offer opportunities in foreign exchange, gold and other valuable metals, overseas time-shares, or cryptocurrency, promising unrealistically high returns that far exceed normal market trends. 

In 2024, Action Fraud received 25,843 reports related to investment fraud, with victims collectively losing £649,062,146. While the number of reports represents a 7 per cent decrease compared to 2023, the total financial loss saw a 13 per cent increase highlighting that fewer but potentially larger frauds were in operation. Cryptocurrency continued to be the most common asset fraudsters claimed to be investing in, accounting for 66 per cent of all reports - a 16 per cent increase from the previous year. 

Detective Inspector Duncan Wynn, Head of Central Fraud Unit at Thames Valley Police, said:

“Fraudsters are masters of manipulation at presenting seemingly lucrative opportunities from beyond a smokescreen of anonymity. 

Tactics include:

“As humans, we tend to accept truth by default and fraudsters will do all they can to exploit this. 

Taking the time the stop and think if something could be fraud, will provide the breathing space to break out of a fraudsters intention to manipulate”

Detective Superintendent Oliver Little, from the Lead Force Operations Room at the City of London Police, said:

“Investment fraud continues to be a key focus area for the City of London because of its prevalence - which is evident from the stark figure of £649m that has been lost last year.

“It may seem obvious, but we would really emphasise the age-old ‘if it is too good to be true it almost certainly is’ mantra. Investment fraudsters will often be incredibly skilled in what they do and will spin a convincing and alluring pitch of how much money they can make you, in often a short amount of time. Do not be seduced by the promise of making “easy money” as the world of stocks and shares is anything but.

“Whether it’s £200 or £200,0000, our advice is always the same - do your research independently, check if the company is FCA registered and never take financial advice via social media or from people who have approached you out of the blue. If it were that easy to make profit on an investment, we would all know about it.”

Social media remained a key tool for fraudsters, with 36 per cent of all investment fraud reports linked to a social media platform. As was the case in 2023, WhatsApp was the most frequently used platform by scammers, appearing in 40 per cent of reports, followed by Facebook (18 per cent) and Instagram (14 per cent). Given this trend, individuals should be extremely wary of anyone contacting them via social media or messaging platforms who claims to be an investor or trader who can guarantee high returns. 

The data also showed that fraudsters frequently impersonated well-known public figures to build credibility. Out of 537 reports, the most commonly used identity was Martin Lewis (44 per cent), in all likelihood due to his reputation as a trusted financial expert. Victims of fraud using his name ranged in age from 31 to 93, but 68 per cent of cases targeted those aged 60 and above, a demographic that may be more familiar with Lewis through his frequent appearances on daytime television. The top three impersonated figures remained unchanged from 2023, with Elon Musk (40 per cent) and Jeremy Clarkson (8 per cent) also being used to deceive victims. 

These findings underscore the growing sophistication of investment fraud and the importance of public awareness. Fraudsters continue to exploit digital platforms, social media, and the reputations of trusted figures to convince victims into handing over money. As always, if an investment opportunity seems too good to be true, it almost certainly is.

As a general guideline, legitimate investments in the FTSE 100 typically yield annual returns of 4-5.5 per cent. Any individual or company promising guaranteed returns of 10 per cent, 12 per cent or even 20 per cent should be treated with extreme caution, as such claims fall well outside standard market expectations. 

What to look out for:

How to protect yourself from investment fraud:

For more information about how to invest safely, please visit: https://www.fca.org.uk/scamsmart

What to do if you’ve been a victim of investment fraud:

You can also contact the Financial Conduct Authority’s consumer helpline on 0800 111 6768 or report suspicious businesses or individuals by using the reporting form on their website.

If you live in England, Wales and Northern Ireland and have been a victim of fraud or cybercrime, report it at www.actionfraud.police.uk or by calling 0300 123 2040. In Scotland, victims of fraud and cybercrime should report to Police Scotland on 101.

Find out how to protect yourself from fraud: https://stopthinkfraud.campaign.gov.uk