CRYPTOCURRENCY FRAUDS MOST COMMON SCAM TYPE, SAYS ACTION FRAUD

MORE than £649 million was lost to investment fraud across the UK in 2024, with over £2 million of that total lost in the Dyfed-Powys Police area.

New data from Action Fraud shows a worrying rise in the scale and impact of scams, even as the number of individual reports has fallen.

A total of 25,843 reports of investment fraud were received last year — a 7 per cent decrease compared to 2023 — but the financial losses jumped by 13 per cent, highlighting that scams are becoming fewer but more costly.

The most common type of fraud involved cryptocurrency, featuring in 66 per cent of all reports — up 16 per cent on the previous year.

Criminals targeting all age groups

The age group most likely to be targeted was 35 to 44, but those aged 55 to 64 suffered the highest financial losses, according to the figures.

Investment fraud typically involves criminals persuading victims — often out of the blue — to put money into high-return schemes or products that are either worthless or entirely fictitious. Popular cons include investments in foreign exchange, gold, precious metals, overseas timeshares, and cryptocurrency.

‘If it sounds too good to be true…’

Detective Superintendent Oliver Little, from the City of London Police, which leads the national response to investment fraud, said: “Investment fraud continues to be a key focus area because of its prevalence — which is evident from the stark figure of £649 million lost last year.

“It may seem obvious, but we always stress the age-old saying: If it sounds too good to be true, it almost certainly is.

“These fraudsters are often highly skilled at making their pitch sound convincing. Don’t be tempted by the promise of ‘easy money’ — legitimate investing is never simple or risk-free.”

He added that people should always research opportunities independently, check the Financial Conduct Authority (FCA) register, and avoid taking advice from strangers or over social media.

Social media: A fraudster’s playground

Social media continues to be a key enabler for fraud, with 36 per cent of investment scams starting on a platform. WhatsApp was the most common, used in 40 per cent of scams, followed by Facebook (18 per cent) and Instagram (14 per cent).

Criminals often impersonate well-known celebrities to gain credibility. In 2024, the most impersonated figure was money-saving expert Martin Lewis — whose name was used in 44 per cent of these cons. Other popular names used by scammers included Elon Musk (40 per cent) and Jeremy Clarkson (8 per cent).

Action Fraud said AI-generated images and deepfake videos were increasingly being used to give scams a false sense of authenticity.

Warning signs to watch for

According to Action Fraud, there are several red flags that often signal a fraudulent investment opportunity:

• Contact via social media or WhatsApp: Unsolicited investment messages are a major red flag. Block and report the sender.
• Promises of guaranteed high returns: Cryptocurrency and trading frauds made up 75 per cent of all scam types. Be sceptical of anyone promising returns of 10–20 per cent or more.
• Use of celebrity endorsements: Fake ads using celebrities like Martin Lewis and Elon Musk cost UK victims over £10 million last year.

How to protect yourself

• Take your time: Legitimate companies will never rush you into investing.
• Get advice: Speak to someone you trust, or consult a qualified financial advisor.
• Check the FCA register: Make sure the company is authorised. If it’s not, you won’t be protected if something goes wrong.
• Be wary of recovery scams: Victims are often targeted again by criminals claiming they can recover lost funds — for a fee.

Help and advice

If you’ve been a victim of investment fraud:

• Contact Action Fraud via www.actionfraud.police.uk or call 0300 123 2040 (England, Wales, Northern Ireland).
• In Scotland, call Police Scotland on 101.
• Report unregulated firms to the FCA using the form on their website or call 0800 111 6768.
• Check your credit rating regularly in case of identity theft.
• Seek legal advice — fraud cases can also give rise to civil legal claims, including the tort of deceit and breach of contract.

For tips on staying safe, visit: https://www.fca.org.uk/scamsmart or https://stopthinkfraud.campaign.gov.uk