The amount of money lost by UK consumers to investment scams has surged by 55% over the past year, as fraudsters increasingly target individuals to swindle their savings, according to new data. Official statistics from the UK banking sector reveal that while overall fraud losses rose by 3% to £629 million in the initial half of this year compared to the previous year, losses attributed to investment scams skyrocketed to £97.7 million—equating to more than £500,000 daily.
### Rising Trend of Investment Scams
Criminals perpetrating these scams often deceive victims into transferring their funds to a non-existent investment scheme or paying for a bogus investment opportunity, frequently lured by promises of substantial returns. While these fraudulent schemes can involve various assets, including gold, wine, real estate, and carbon credits, it is widely believed that fake cryptocurrency scams are the most prevalent.
### Scams Targeting Vulnerable Investors
UK Finance, the banking industry body that released the data, indicated that there is an ongoing trend of scams tied to cryptocurrencies, particularly those advertised on social media with the allure of significant returns. Victims often fall prey to these scams after clicking on misleading social media advertisements or alerts, or by viewing deepfake videos that promote imaginary investment opportunities while impersonating legitimate businesses.
Typically, victims start by investing a relatively modest amount—often around £250—only to be misled by sophisticated tools employed by scammers, such as software that simulates a real-time cryptocurrency trading interface. This deceptive display can convince individuals that they are accumulating wealth, leading them to lose even larger amounts when attempting to withdraw their “earnings.” These attempts are consistently thwarted by claims of additional payments needed, such as broker fees or taxes.
### Notable Cases of Cryptocurrency Scams
In March, reports highlighted a cryptocurrency scam based in Georgia that swindled UK residents out of £9 million, utilizing deepfake videos and fictitious news segments featuring well-known financial experts like Martin Lewis to promote their fraudulent schemes. Certain victims, including finance professionals, have suffered losses amounting to hundreds of thousands of pounds.
### Calls for Industry Collaboration
The alarming findings from UK Finance are likely to amplify demands for cryptocurrency companies and trade organizations to take a more proactive role in combating fraud through collaborative efforts. Recently, Stop Scams UK hosted a closed-door roundtable discussion with representatives from the banking, telecommunications, and technology sectors, attended by key figures such as Bank of England Governor Andrew Bailey and Fraud Minister Lord Hanson.
It has been reported that some participants expressed a desire for the cryptocurrency industry to engage in ongoing collaboration, working together to share information and develop effective solutions to combat fraud. UK Finance is urging the government to ensure that all sectors are held accountable in the fight against fraud in its upcoming fraud strategy.
### Other Rising Fraud Concerns
Another alarming trend identified was the increase in romance scams, where victims are deceived into believing they are in a genuine relationship, resulting in a 35% rise in losses compared to last year. Additionally, contactless card fraud saw a 27% increase during the first half of 2025. Many experts suspect that the actual figures for fraud losses are significantly higher, as countless victims choose not to report these crimes due to feelings of embarrassment or shame.
In response to the alarming data, the Payments Association, a trade organization, criticized UK policymakers for not adequately addressing the root issue of preventing fraud at its source, particularly by holding social media platforms accountable. Richard Daniels, director of fraud at TSB Bank, emphasized that these criminal activities are fueled by vulnerabilities in other sectors, particularly social media, urging phone companies and social media outlets to take immediate action to eliminate scam-related content.
