£63m lost to investment fraud scams on social media

More than £63m has been lost nationally by victims of investment fraud who referred to a social media platform in their report to Action Fraud, new figures have revealed.

The national reporting centre for fraud and cyber crime stated that criminals are continuing to use popular social media apps to advertise investment scams and contact potential victims.

Some victims mentioned being approached directly by an investment fraudster, whilst others said they were attracted to a fake investment through adverts.

Action Fraud confirmed that during a 12-month period, 5,039 reports of investment fraud made reference to a social media platform, with 44.7% of reports stating the fake commodity they had been scammed into investing in was a type of cryptocurrency. In the reports, Instagram was the most referenced platform (35.2%), followed by Facebook (18.4%).

The City of London Police said the use of social media by criminals is helping to buck the trend for typical investment fraud victims, with under-30s being most affected. Specifically, 27.5% of all investment fraud victims who mentioned social media in their report were aged between 19 and 25.

By contrast, when looking at investment fraud reports where social media didn’t play a factor in the scam, the average age of victims was over 50.



Superintendent Sanjay Andersen, from the City of London Police’s National Fraud Intelligence Bureau, said that reports of investment fraud have “increased significantly” since the start of the coronavirus pandemic.



“Being online more means criminals have a greater opportunity to approach unsuspecting victims with their scams,” Anderson said. “We would encourage anyone thinking about making an investment to do their research first. Visit the FCA’s website and check and double check every detail before handing over your money or personal details.”


Commenting on Action Fraud’s latest figures, interactive investor personal finance campaigner, Myron Jobson, added that social media has “unwittingly become a breeding ground for dastardly investment scams”.

Jobson added: “These scams feed on the fear of missing out culture that is rife on social media platforms, luring users in with phoney ‘too good to be true’ investment opportunities amid posts showing users living their ‘best life’. However, these scams have a devastating consequences on victims, both financially and emotionally.

“There is an epidemic of financial scams in the UK which has been exacerbated over the past year by the pandemic, with fraudsters taking advantage of the COVID tumult to hide their nefarious schemes.
 
“It is all too easy for unscrupulous individuals to promote their scams to the masses, so it paramount that Online Safety Bill puts a legal onus on these companies to do more in tackling the issue.
 
“Financial companies, charities as well as the regulator have been screaming for the bill to be amended accordingly. The government must now act to pull the plug on social media scammers.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.