The amount of money lost to investment scams by UK consumers has surged by 55% within the past year, as criminals engaged in cryptocurrency fraud ramp up their operations to deceive individuals out of their finances, according to recent data. Official statistics from the UK banking sector reveal that while the overall sum taken by fraudsters rose by 3% to £629 million in the first half of this year compared to the previous year, losses from investment scams skyrocketed to £97.7 million during this timeframe—averaging over £500,000 lost daily.
### Rising Threat of Investment Scams
In these scams, perpetrators mislead their victims into transferring money to a non-existent fund or investing in a counterfeit opportunity, often enticing them with promises of substantial returns. Although these fraudulent schemes can involve various assets such as gold, wine, real estate, carbon credits, and land, it is believed that fake cryptocurrency scams are the most prevalent. UK Finance, the banking body that released the data, highlighted industry insights indicating a continued rise in scams linked to cryptocurrencies, particularly those promoted by social media boasting significant returns.
### The Mechanics of Deception
Victims often encounter these scams through deceptive social media advertisements or alerts, or by viewing manipulated videos that mimic credible sources. These advertisements usually promote a supposedly profitable crypto investment, which ultimately leads to fraudsters impersonating legitimate businesses. Initially, victims may invest a modest amount, perhaps around £250, and, due to the advanced tools used by the scammers—such as software that simulates live crypto trading—they may believe they are on the verge of striking it rich.
### Escalating Financial Losses
Unfortunately, victims frequently find themselves losing much larger amounts when attempting to withdraw their “profits,” as they are consistently met with demands for additional payments, which could be for broker fees or taxes. In March, it was reported that a crypto scam originating from Georgia, a former Soviet state, defrauded UK investors of £9 million, employing deepfake videos and fabricated news reports featuring financial experts like Martin Lewis to promote these false investments. Some victims, including finance professionals, have been duped out of hundreds of thousands of pounds.
### Calls for Industry Collaboration
The findings from UK Finance are expected to amplify demands for cryptocurrency companies and industry associations to take a more proactive role in combating fraud through coordinated efforts. Recently, Stop Scams UK hosted a private roundtable meeting involving representatives from the banking, telecommunications, and technology sectors, attended by prominent figures such as Bank of England Governor Andrew Bailey and Fraud Minister Lord Hanson. It has been suggested that attendees were eager for cryptocurrency firms to join in ongoing collaborative initiatives, sharing data and developing strategies to address these issues.
### Government Accountability in Fraud Prevention
UK Finance is advocating for the upcoming government fraud strategy to ensure that all sectors are held responsible for fraud prevention. Additionally, there has been a worrying rise in romance scams, with reported losses increasing by 35% compared to last year, alongside a 27% uptick in contactless card fraud during the first half of 2025. Experts caution that the actual numbers may be far higher, as many scam victims choose not to report their experiences due to feelings of embarrassment or shame.
### Urgent Action Needed from Social Media Platforms
In response to these alarming statistics, the Payments Association, a trade organization, criticized UK policymakers for not tackling the root issue of fraud prevention and called for accountability from social media platforms. Richard Daniels, director of fraud at TSB Bank, emphasized that these crimes are fueled by weaknesses in other sectors, particularly social media, urging telecommunication companies and social media networks to take immediate action to eliminate scam-related content at its source.
