Investment fraud reports surge 37%, with £991m lost in 2025

A campaign to highlight the warning signs of investment fraud has been launched by the National Crime Agency (NCA). The initiative aims to address a significant increase in reports and substantial financial losses experienced by victims across the country. Criminals are actively promoting fake companies and investment schemes through websites and social media platforms.

According to the NCA, reports of investment fraud surged by 37%, rising from 26,616 in the 2024-25 period to 36,464 in 2025-26. The total financial losses recorded in 2025 amounted to £991 million. This figure equates to approximately £100,000 being lost every hour to these scams.

Types of Fraud and Victim Impact

Common fraudulent activities include share sales, cryptocurrency investments, and recovery fraud. Recovery fraud occurs when criminals contact previous victims, claiming they can help retrieve money lost in earlier scams, often leading to further financial loss. Scammers frequently promise high returns and may use fake celebrity endorsements or fabricated news stories to attract potential victims.

Many individuals do not realise they have been defrauded until they attempt to access their funds or close accounts, only to find the organisation has vanished. Nick Sharp, deputy director of fraud at the NCA's National Economic Crime Centre, stated that these fraudsters target individuals seeking to increase their money, often overwhelming them with data to create a false impression of significant gains. He added that the average loss in an investment fraud case exceeds £25,000, a sum that is life-changing for most. This also causes considerable damage to victims' self-confidence and their trust in making legitimate investments.

Regulatory Warnings and Consumer Protection

Steve Smart, executive director for fighting financial crime at the Financial Conduct Authority (FCA), acknowledged that investment scams have devastating consequences for victims. He noted that the latest figures indicate a need for intensified efforts to combat the criminals involved. Last year, the FCA issued 2,329 warnings concerning unauthorised or potentially fraudulent firms. A focused week of action also identified illegal financial advertisements that reached at least 2.3 million UK social media accounts.

Mr. Smart emphasised that platforms hosting these scams must adopt a more proactive stance in protecting their users. He advised consumers to use the FCA's firm checker tool to verify if a firm is authorised for the specific investments being offered. This action can reduce the likelihood of becoming a victim and provide greater protection if issues arise.

Advice for Potential Victims

Individuals who suspect they have been scammed are urged to contact their bank and the police immediately. They should also avoid deleting any messages or communications that could assist in an investigation. Furthermore, fraud victims are cautioned to be wary of services that offer to recover lost money, as criminals often exploit these situations to demand additional funds.