New figures released by Action Fraud reveal that victims in the UK lost over £649 million to investment fraud in 2024, despite a drop in the number of reported incidents.
A total of 25,843 cases were recorded, showing a 7 per cent decrease from the previous year. However, the total financial loss surged by 13 per cent, suggesting that scammers are now operating fewer but significantly larger-scale frauds.
According to the City of London Police – the national lead force for fraud – those aged between 35 and 44 were the most frequently targeted, whereas individuals aged 55 to 64 suffered the highest financial losses.
Cryptocurrency scams were the most prevalent, making up 66 per cent of all reports – a sharp 16 per cent increase on the previous year.
Investment scams also involved bogus opportunities in foreign exchange markets, precious metals such as gold, and overseas time-shares. The common thread was the promise of unusually high and often guaranteed returns – a major red flag for potential fraud.
Detective Superintendent Oliver Little from the City of London Police warned: “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 £649 million 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.”
The guidance is particularly important given the rise in scams originating from social media platforms.
Action Fraud reported that 36 per cent of all investment fraud cases involved some form of social media contact. Of these, WhatsApp was the most commonly used platform (40 per cent of reports), followed by Facebook (18 per cent) and Instagram (14 per cent).
In an increasingly sophisticated move, fraudsters have been found to impersonate well-known public figures to lend legitimacy to their schemes.
Of 537 reports involving impersonation, Martin Lewis was the most commonly misused identity (44 per cent of such cases), targeting victims aged between 31 and 93, with 68 per cent aged 60 or over.
His reputation as a trusted financial advisor makes him a prime target for exploitation by scammers. Other frequently impersonated figures include Elon Musk (40 per cent) and Jeremy Clarkson (eight per cent), continuing a trend from 2023.
The City of London Police stated: “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 rule of thumb, genuine investments – such as those in the FTSE 100 – tend to offer annual returns of around 4 to 5.5 per cent. Any claims guaranteeing returns of 10 per cent or higher should be approached with extreme scepticism, as such promises far exceed realistic market expectations.
