According to recent data from UK banking industry sources, there has been a significant increase in investment scam losses among UK consumers, with a reported rise of 55% in a year attributed primarily to cryptocurrency-related fraud. In the first half of this year, the total amount lost to fraudsters reached £629 million, which represents a 3% increase from the previous year. Notably, losses related to investment scams alone accounted for £97.7 million, averaging over £500,000 each day.
These investment scams often involve techniques where criminals deceive victims into transferring their funds to non-existent or fraudulent investment schemes, frequently promising high returns. While fraudulent assets can include various commodities such as gold, wine, and land, fake cryptocurrency scams appear to be the most prevalent.
UK Finance, the organization that reported these figures, indicated that there is a rampant occurrence of scams linked to cryptocurrencies, with many victims being targeted via advertisements on social media platforms. Individuals might initially invest small amounts—potentially around £250—but they are lured to believe that they are making substantial profits through fraudulent trading interfaces. However, when attempting to withdraw their funds, victims often face barriers due to additional fees or taxes, leading to larger losses.
Additionally, a concerning incident highlighted involved a scam based in Georgia that reportedly defrauded UK investors of £9 million using deceptive tactics like deepfake videos featuring recognizable financial experts.
In response to these growing concerns, there have been calls for enhanced collaboration within the cryptocurrency sector and other industries to address and mitigate fraud effectively. Recent discussions among industry stakeholders, including representatives from banking, technology, and government sectors, have underscored the necessity for shared strategies to combat such crimes.
Moreover, there has also been an alarming rise in romance scams and contactless card fraud, with respective increases of 35% and 27% in reported losses. Many experts believe that actual fraud figures may be significantly higher, as many victims choose not to report their experiences.
Source: https://www.theguardian.com/money/2025/oct/24/surge-uk-savings-lost-investment-scams-fake-crypto-fraud