Rising cost of investment fraud revealed

In 2025, 34,673 people reported investment fraud to Report Fraud, the national service that replaced Action Fraud in December 2025. This marks a 31 per cent rise on the previous year, with officers warning that fraudsters are taking advantage of economic uncertainty, volatile markets and increasingly convincing online platforms to lure in victims.

The rise in reporting is not only linked to an increase in investment fraud, but also due to the point at which victims realise what has happened. Reports began climbing steadily from March and spiked in July and September when many people review their investments, move money into new products or check their returns ahead of the new financial year.

For thousands of victims, it was only at that point that the truth became clear: the investment they were sold never existed. Losses averaged £25,612 per person, often representing pension savings or long‑term investments.

The City of London Police is responsible for policing the City’s business district, the ‘Square Mile’ in the historical centre of London. In addition, it holds national responsibility for Economic Crime and under this remit is host to Action Fraud (the national fraud and cyber crime reporting service), the National Fraud Intelligence Bureau (NFIB), the Insurance Fraud Enforcement Department and the Police Intellectual Property Crime Unit.

Detective Superintendent Oliver Little, from the Lead Force Operations Room at the City of London Police, said: “Investment fraud continues to have a devastating impact on victims, many of whom lose life‑changing amounts of money. Criminals are using professional‑looking websites, persuasive sales tactics and even cloned branding from real financial firms to appear legitimate.

“We’re urging the public to take their time, carry out proper checks and get independent financial advice before parting with any money.”

Investment fraud last year ranged from bogus online trading platforms to fake bond schemes, cryptocurrency opportunities and glossy social‑media adverts that appeared to feature well‑known public figures. Fraud reports have highlighted how criminals now deploy AI‑manipulated videos, deepfake endorsements and cloned websites to draw victims in, echoing patterns seen across the wider fraud landscape.

Another growing problem is so‑called “recovery fraud”, where criminals return to previous victims while posing as law enforcement, lawyers or specialist recovery firms. They promise to retrieve stolen money but instead charge upfront fees and disappear. Detectives describe this as one of the most cynical developments in the fraud world, as criminals effectively monetise a victim’s desperation a second time.

Although victims were recorded in every police force area in the UK, the data suggests the picture may be even broader; more than a quarter of people reporting investment fraud did not disclose their location, limiting the ability to map the full spread of cases. Older adults, particularly those over 60, remained the most likely to come forward, in part because they are more likely to have significant savings or pension pots invested.

In parallel with these trends, officers have also observed a rise in so‑called “finfluencers” across social media – predominantly young male personalities who boast about making “easy money” on high‑risk trading platforms, particularly those linked to forex and rapid‑turnover investments.

Their content often glamorises quick wins, luxury lifestyles and aggressive self‑improvement narratives, themes recently explored in Louis Theroux’s documentary on the online ‘manosphere’. While not all of these personalities are involved in criminal activity, their posts can create a false sense of legitimacy around speculative trading and make inexperienced followers more vulnerable to opportunistic scammers who mimic the same language, style and promises.