City of London Police reveals more than £612 million was lost to investment fraud in the UK last year

People aged 55 or over are more likely to be targeted by investment fraud, new figures show.

The data from Action Fraud, the national fraud and cyber crime 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 55-64 years old, and that as the victim’s age increases, so does the loss amount. In the 55-64 age range alone, over £133 million in losses was recorded.

Temporary Detective Superintendent Oliver Little, from the Lead Force Operations Room at the 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.

“If you are contacted out of the blue and asked if you would like to invest money, even if you meet someone face-to-face or at an office location, do not be rushed into handing over any money.

“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 10 per cent of reporting. Analysts at the 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. 

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.

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