Top investment scams to beware of – and what to do if you’re targeted
Fraudsters are finding ever more sophisticated ways of stealing your hard-earned money. Before parting with a penny, read our guide on the top investment scams and how to avoid them
Samantha Partington
Investment scams come in many forms and their prevalence is on the rise.
In 2025, victims of investment fraud lost an average of £1,675 every minute, according to figures from the City of London Police.
In total, criminals stole £879.8 million from unsuspecting victims, while more than 34,000 people (a 31% rise from 2024) reported investment fraud to Report Fraud, the UK's national reporting centre for fraud and cybercrime.
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The City of London Police said investment scams ranged from bogus online trading platforms to AI-manipulated videos enticing victims.
Incidences of “recovery fraud” are also growing, where criminals re-target previous victims posing as law enforcement, lawyers or specialist recovery firms like debt collection agencies. Victims are told stolen money will be retrieved and charged upfront fees before the fraudsters disappear.
Over 60s were the most likely to report being victims of investment scams last year. The City of London Police said this was, in part, because they are more likely to have lost significant amounts from savings or pension pots.
Detective Superintendent Oliver Little, from the City of London Police, said: “Investment fraud continues to have a devastating impact on victims, many of whom lose life‑changing amounts of money.
“Criminals are using professional‑looking websites, persuasive sales tactics and even cloned branding from real financial firms to appear legitimate.”
With investment scams ever-more complex in nature, knowing the most common types to look out for and how to avoid them could save you thousands if not hundreds of thousands of pounds.
Top investment scams to be aware of
Trade body UK Finance has highlighted five of the most common investment scams and how to avoid them.
1. Fake investment websites
Scammers will often set up fake investment websites promising high returns to investors. Sometimes, they’ll use the branding of legitimate and established firms to make them appear more genuine.
Individuals who submit their details to these websites are contacted and encouraged to invest small amounts.
Often, there are fake account dashboards showing how these little investments are showing strong returns and victims are urged to invest larger sums.
But when attempts are made to withdraw money, the scammers go cold, block access to any funds and disappear with them.
A major red flag for this type of scam is the use of pressure tactics to rush you into parting with your money.
2. Crypto scams
Cryptocurrency (crypto) scams tend to be carried out on social media, often coming via adverts featuring fake celebrity endorsements promising high returns.
Sometimes, people are also targeted through search engines like Google and Bing.
Scam adverts then redirect victims to websites showing fake prices and investments.
People are persuaded to invest small amounts and sometimes larger amounts before accounts are closed and money stolen.
To protect yourself, be wary of celebrity-endorsed investments and avoid clicking on links through ads on social media.
3. Online dating investment scams
Online date investment scams, a type of romance fraud, begin with a fraudster gaining someone’s trust through online dating platforms.
They will often claim to be experts in cryptocurrency investing, persuading their victims to invest on fake trading platforms, before taking their money.
This type of scam can also happen on platforms designed for people looking to make friends.
Always research the person you’re speaking to to see if they actually exist. You can check their profile on social media, or upload a photo of them into a search engine and see if it appears anywhere. If it doesn’t, that person could have created a fake profile.
Always be wary of people declaring strong feelings for you after knowing you for a brief period of time as well.
4. Property investment scams
This scam involves fraudsters promoting overseas property investments that are guaranteed to increase in value or will offer you a guaranteed rental income.
However, the property is often not fully built or may not even exist.
If someone is contacting you on your phone or via social media out of the blue with this type of investment “opportunity”, beware.
5. Share scams
Share scams typically involve a cold caller offering you shares in a company about to go public through an Initial Public Offering (IPO).
The victim is promised high returns and pressured to act quickly, but after the money is transferred, the firm goes cold and uncontactable.
If you receive a call, email or message on social media out of the blue offering you such an investment opportunity, research the company to make sure it’s legitimate first.
Like with most scams, be wary of businesses trying to make you act quickly.
How to avoid investment scams
There are also general steps you can take to avoid falling victim to investment scams.
You should check if a firm offering you investment opportunities is authorised by inputting its details on the FCA’s Firm Checker tool. If it doesn’t show up, it means it’s not regulated and probably shouldn’t be trusted.
Never download software or apps allowing someone remote access to your devices, including your computer, laptop, tablet or phone. Scammers may use this opportunity to steal personal or financial information from you.
Be wary of texts, emails or website links, especially any containing spelling errors and extra punctuation.
Lastly, if something seems too good to be true, it most likely is. If a salesperson is offering you above-market returns on an investment, always question them.
Can I get my money back from an investment scam?
In some instances you may be able to get some or all of your money back after being lured into an investment scam.
In October 2024, rules were set by the Payment Systems Regulator, the body that regulates payment systems in the UK, that apply to reimbursing victims of fraud whereby the consumer has authorised the transfer of money from their account. This is called Authorised Push Payment fraud.
Certain transactions aren’t covered however, such as payments made to overseas bank accounts or payments made by debit and credit cards.
How to report investment scams
It is vital to act quickly if you think you have been a victim of investment fraud. The sooner you report it to the bank or building society that holds the account you have transferred the money from, the more chance it has of recovering your cash.
Most institutions have a dedicated fraud team on hand to help quickly.
To try and get your money back, you must report the fraud to your bank no more than 13 months after the last fraudulent payment was made.
You should also report the scam to Report Fraud, formerly Action Fraud, using its online form. This will help stop the perpetrators from scamming other people.
The FCA also has a consumer helpline for reporting fraud: 0800 111 6768. Find more information and guidance on the Take Five to Stop Fraud website.
