Fraud scammers have plundered an astonishing £649m from British bank accounts in the past year with many of the reported crimes involving thieves masquerading as money saving expert Martin Lewis. The sum marks a sharp increase in the losses people are incurring after falling foul of investment fraud, with cryptocurrency scams on the sharpest rise.

The nationwide 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% decrease compared to 2023, the total financial loss saw a 13% increase highlighting that fewer but potentially larger scams were in operation.

Cryptocurrency continued to be the most common asset fraudsters claimed to be investing in, accounting for 66% of all reports - a 16% increase from the previous year.

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.”

Police warn that social media remained a key tool for fraudsters, with 36% 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% of reports, followed by Facebook 18% and Instagram 14%. 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%, which police say is due to his sterling reputation as a trusted financial expert. Victims of fraud using his name ranged in age from 31 to 93, but 68% 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% and Jeremy Clarkson 8% 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%, 12% or even 20% should be treated with extreme caution, as such claims fall well outside standard market expectations.

What to look out for:

Being approached via social media: the use of social media platforms as an enabler was identified in 36% of the reports, with WhatsApp being the most prevalent. If you are approached, out of the blue, by someone telling you they can make you guaranteed returns on an investment, then block the number and don’t respond. For example, on Whatsapp you can do this by pressing and holding the message bubble, select ‘Report’ and then follow the instructions.

Investment opportunities that mention cryptocurrency, trading or stocks and shares: cryptocurrency and trading (unspecified) alone made up 75% of all commodity types mentioned in Action Fraud reports. These two categories hugely outweigh traditional investment in commodities like natural resources (oil and gas), energy, precious metals, alcohol and forex (foreign exchange) that were mentioned in fraud reports.

An advert which uses a well-known celebrity: over £10m was lost in 2024 to fraudsters who convinced victims to invest by using an influential identity like Martin Lewis, Elon Musk or Jeremy Clarkson. AI generated images and videos were produced which helped to promote the bogus investment schemes.

How to protect yourself from investment fraud:

Investment opportunities: don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into investing on the spot.

Seek advice first: before making significant financial decisions, speak with trusted friends or family members, or seek professional independent advice.

FCA register: use the Financial Conduct Authority’s (FCA) register to check if the company is regulated by the FCA. If you deal with a firm (or individual) that isn’t regulated, you may not be covered by the Financial Ombudsman Service (FOS) if things go wrong and you lose your money.

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 could be targeted again: fraudsters sometimes re-establish contact with previous victims claiming that they can help them recover lost money, this is just a secondary scam. Hang up on any callers that claim they can get your money back for you.

Identity theft: if you suspect your identity may have been stolen, you can check your credit rating quickly and easily online. You should do this every few months anyway, using a reputable service provider and follow up on any unexpected or suspicious results.

Legal advice: in many cases of fraud there is a close correlation between what may be considered fraud and the civil tort of deceit and/or breach of contract, for which there are civil litigation options. We would always advise that you seek professional legal advice or contact Citizens Advice to understand your options.

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