More than £649m lost to investment fraud last year, latest figures show
More than £649 million was lost to investment fraud in 2024, with cryptocurrency fraud on the rise, according to the latest figures from Action Fraud.
Data shows that people aged 35-44 were more likely to be targeted for investment fraud, while those aged 55-64 suffered the greatest financial losses.
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 seven per cent decrease compared with 2023, the total financial loss saw a 13 per cent increase, highlighting that fewer but potentially larger scams were in operation, said City of London Police, the lead force for fraud.
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.
Investment fraud typically 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.
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 £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.”
Social media remained a key tool for fraudsters, according to Action Fraud, 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,” said City of London Police.
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 Mr 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 (eight per cent) also being used to deceive victims.
City of London Police said 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,” it added. “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 ten 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.