THE THAMES Valley Police and Crime Commissioner (PCC) has released data from Action Fraud which shows that more than £23m has been lost as a result of investment fraud in the region.
The PCC also revealed that it received 861 reports of investment fraud last year.
Investment fraud occurs when criminals approach individuals, often out of the blue, and persuade them to invest in schemes or products that are either worthless or entirely fictitious.
Fraudsters may claim to offer opportunities in foreign exchange, gold and other valuable metals, overseas time-shares, or cryptocurrency, promising unrealistically high returns that far exceed normal market trends.
Nationally, Action Fraud received 25,843 reports related to investment fraud, with victims collectively losing £649,062,146.
While the number of reports represents a 7% decrease compared to 2023, the total financial loss saw a 13% increase.
The OPCC explained this means that fewer, though potentially larger, scams were in operation.
Cryptocurrency continued to be the most common asset fraudsters claimed to be investing in, accounting for 66% of all reports–a 16% increase from the previous year.
Social media remained a key tool for fraudsters– 36% of all investment fraud reports linked to a social media platform.
WhatsApp was the most frequently used platform by scammers, followed by Facebook and Instagram.
As such, individuals should be extremely wary of anyone contacting them via social media or messaging platforms who claims to be an investor or trader who can guarantee high returns.
The data also showed that fraudsters frequently impersonated well-known public figures to build credibility.
Out of 537 reports in the UK, the most commonly used identity was Martin Lewis (44%), probably as a result of his reputation as a trusted financial expert.
Victims of fraud using his name ranged in age from 31 to 93, but 68% of cases targeted those aged 60 and above, a demographic that may be more familiar with Lewis through his frequent appearances on daytime television.
The top three impersonated figures remained unchanged from 2023, with Elon Musk and Jeremy Clarkson also being used to deceive victims.
These findings underscore the growing sophistication of investment fraud and the importance of public awareness.
Fraudsters continue to exploit digital platforms, social media, and the reputations of trusted figures to convince victims into handing over money.
The OPCC has released advice to help people avoid becoming the victim of investment fraud.
If an investment opportunity seems too good to be true, it almost certainly is.
As a general guideline, legitimate investments in the FTSE 100 typically yield annual returns of 4-5.5%.
Any individual or company promising guaranteed returns of 10%, 12% or even 20% should be treated with extreme caution, as such claims fall well outside standard market expectations.
Among the things they advise to be aware of is being approached via social media; the use of social media platforms as an enabler was identified in 36% of the reports, with WhatsApp being the most prevalent.
If you are approached, out of the blue, by someone telling you they can make you guaranteed returns on an investment, then block the number and don’t respond.
For example, on Whatsapp you can do this by pressing and holding the message bubble, select ‘Report’ and then follow the instructions.
They also advise caution regarding investment opportunities that mention cryptocurrency, trading or stocks and shares.
Cryptocurrency and trading alone made up 75% of all commodity types mentioned in Action Fraud reports.
These two categories hugely outweigh traditional investment in commodities like natural resources (oil and gas), energy, precious metals, alcohol, and forex (foreign exchange) that were mentioned in fraud reports.
Adverts which uses a well-known celebrity should also be treated with caution; over £10m was lost in 2024 to fraudsters who convinced victims to invest by using an influential identity like Martin Lewis, Elon Musk or Jeremy Clarkson.
AI generated images and videos were produced which helped to promote the bogus investment schemes.
The OPCC advises not to be rushed into making an investment– legitimate organisations will never pressure you into investing on the spot.
Potential investors should seek advice first before making significant financial decisions, such as speaking with trusted friends or family members, or seeking professional independent advice.
They should also use the Financial Conduct Authority’s (FCA) register to check if the company is regulated by the FCA.
If you deal with a firm (or individual) that isn’t regulated, you may not be covered by the Financial Ombudsman Service (FOS) if things go wrong and you lose your money.
Victims can also be targeted again in secondary scams which seem like opportunities to recover lost money.
Victims should contact Victims First in the Thames Valley, which supports victims of fraud and other crimes on 0300 1234 148 or via a Victims First Online Referral or live chat.
Thames Valley Police and Crime Commissioner, Matthew Barber said: “Investment fraud is one of the most common types of fraud and it can destroy lives and leave people feeling humiliated and helpless.
“Some feel guilty they were groomed or that their contacts were used to target other victims through social media, but only the fraudsters are at fault.
“People are being robbed of their life savings and future through more and more sophisticated scams many using AI impersonating loved ones.
“I urge those who have been affected to report investment fraud and seek support–I also encourage everyone to continue to heed police advice.”
You can also contact the Financial Conduct Authority’s consumer helpline on 0800 111 6768 or report suspicious businesses or individuals by using the reporting form on their website.
If you have been a victim of fraud or cybercrime, report it at actionfraud.police.ukor by calling 0300 123 2040.
More information about how to protect yourself from fraud: stopthinkfraud.campaign.gov.uk
