UK Investment Fraud Losses Rise to £649 Million in 2024, Despite Drop in Reports

Investment fraud losses in the UK climbed to £649,062,146 in 2024, despite a 7% drop in the number of reports, according to data from Action Fraud, the country’s national fraud reporting center operated by the City of London Police. The decline in reports suggests fewer but larger-scale scams were in operation, marking a 13% increase in total financial losses compared to 2023.

Cryptocurrency remained the primary vehicle for fraud, accounting for 66% of all investment scam reports, a 16% rise from 2023.

Data also showed that individuals aged 35 to 44 were the most frequently targeted, while those aged 55 to 64 suffered the highest financial losses.

Fraudsters continued to exploit social media platforms to lure victims, with 36% of all investment fraud reports linked to a social media platform. WhatsApp remained the most commonly used platform, appearing in 40% of reports, followed by Facebook (18%) and Instagram (14%).

Scammers frequently posed as well-known public figures to gain victims' trust. Out of 537 reports, Martin Lewis was the most impersonated figure (44%), likely due to his reputation as a trusted financial expert. Elon Musk (40%) and Jeremy Clarkson (8%) remained among the top three impersonated figures, consistent with trends from 2023.

Investment fraudsters often market investment opportunities in foreign exchange, gold, precious metals, overseas time-shares, and cryptocurrency, promising returns well above market norms.

The City of London Police emphasized that legitimate investments in the FTSE 100 typically yield annual returns of 4-5.5%. Any guaranteed returns of 10%, 12%, or even 20% should be treated with extreme caution as they fall outside standard market expectations.

Authorities reminded people to look out for: Being approached via social media; Investment opportunities that mention cryptocurrency, trading or stocks and shares; An advert which uses a well-known celebrity.