Niall Hearty of Rahman Ravelli considers the latest statistics
People lost more than £649 million to investment fraud in the UK last year.
Data produced by Action Fraud, the UK's national reporting centre for fraud and cybercrime, shows that it received 25,843 reports relating to investment fraud in 2024.
The total number of reports was 7% down on 2023. But the total amount lost to investment fraud was 13% higher, which could be viewed as a sign that while there may be less investment fraud scams in operation, those that are carried out are bringing bigger rewards for the criminals operating them.
Cryptocurrency remains the most commonly-used investment fraud tactic, accounting for 66% of all reports. This is a 16% increase on 2023.
Action Fraud also states that social media is still a key tool for fraudsters. Social media platforms featured in 36% of 2024 investment fraud reports. WhatsApp was the platform most used by fraudsters. It was named in 40% of investment fraud reports where social media was involved, followed by Facebook (18%) and Instagram (14%). The greatest financial loss was suffered by those in the 55-64 age group.
The figures are a stark indicator of the scale of investment fraud and the strategies used by those looking to make illegal gains through it. Which is why investment fraud continues to be a key focus for law enforcement agencies; including the City of London Police.
But as it 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, it can be difficult to police. Introducing effective preventative measures can also be a challenge. As a result, encouraging a greater awareness of the risks involved and reinforcing the old mantra "If it is too good to be true it almost certainly is'' are arguably the best tactics.
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