Over 55s most at risk as £612m lost to investment fraud
More than £612 million was lost to investment fraud in the UK last year, according to City of London Police.
And people aged 55 or over were the most likely to be targeted by investment fraud, the new figures show.
The data from Action Fraud, the national fraud and cybercrime reporting service, revealed the soaring rate of investment fraud in the last year, with a reported £612,208,663 in losses.
Investment fraud is when criminals contact people out of the blue and convince them to invest in schemes or products that are worthless or do not exist. Investment opportunities could include foreign exchange, gold and valuable metals, time-shares overseas and cryptocurrency, where victims are told they can see a huge return on investment, way above market trends.
Reports to Action Fraud show that from January 2023 to January 2024, there were 30,130 reports of investment fraud, with the average loss per victim being £25,110.
City of London Police, the national lead force for fraud, saw one report from a victim who lost a total of £11.9 million.
The data also revealed that the highest affected age range was those aged 55 to 64 years old, and that as the victim’s age increases, so does the loss amount. In the 55 to 64 age range alone, more than £133 million in losses was recorded.
T/Detective Superintendent Oliver Little, from the lead force operations room at City of London Police, said: “Investment fraud destroys lives and is of particular concern to the older demographic of the UK public.
“Victims who are being targeted are those with a healthy amount of savings who have put their hard-earned money away for a rainy day, or to help support family and have been robbed of those opportunities.
“We advise everyone to take preventative measures before making a large financial commitment. It’s an age-old saying, but if it sounds too good to be true, it probably is.
“Always seek the advice of friends, family and/or a financial advisor if you are wanting to invest any form of savings. Stop. Think Fraud.”
Cryptocurrency was the most common commodity that victims believed they were investing in and accounted for 40 per cent of all reports. Unspecified trading and stocks and shares collectively accounted for ten per cent of reporting.
Analysts at City of London Police suggested that the reason cryptocurrency and general trading in stocks were popular could be because fraudsters ask for a smaller upfront investment to ‘prove’ the opportunity is legitimate. This tactic presents itself as a lower risk for investors, said analysts.
In 861 (three per cent) reports, the names of social media or influential personalities were used to persuade investors into making investments. Investors saw advertisements on social media platforms and articles featuring well known celebrities such as Martin Lewis promoting trading platforms, with celebrities or high-profile figures mentioned in 89 per cent of these reports.