Investment scams are becoming one of the biggest financial threats facing UK consumers, with new data showing they now account for the largest losses in authorised push payment (APP) fraud.
APP fraud happens when someone is persuaded to transfer money directly to a criminal. It covers everything from fake deliveries to romance scams and bogus investments. These scams often look professional. They use polished branding, convincing reviews, and names that sound legitimate. That’s why knowing the warning signs – and how to avoid them – is so important.
The typical investment fraud loss is around £15,000
According to the latest industry figures, criminals stole more money through APP scams in the first half of 2025 than during the same period last year. Total recorded losses rose to £257.5 million, even though the number of cases actually fell. And, while the average APP case involved a loss of around £2,325. For investment scams, the typical loss was closer to £15,000 — more than 20 times higher.
Investment scams work because they feel legitimate. The criminals behind them are patient, organised and often highly convincing. They build fake websites, fabricate investment dashboards, use cloned phone numbers and create entire networks of “advisers” to win someone’s trust.
A few trends are driving the surge:
- Professional-looking scams: Fraudsters mimic real firms with websites and apps that look genuine.
- Manipulated online adverts: Paid ads on social media or search engines often lead people to fake cryptocurrency or bond schemes.
- AI-powered impersonation: Deepfake videos, doctored testimonials and realistic chatbots make scams harder to spot at a glance.
- Longer grooming periods: Unlike quick-fire purchase scams, investment con artists may string someone along for months — meaning the financial loss, when it comes, can be devastating.
Fighting back against the scammers
There is some good news. Banking security has improved dramatically — preventing around £870 million in unauthorised fraud attempts. And, since new APP fraud reimbursement rules came into force, more victims are getting their money back. Around £159 million was returned in six months — a sizeable increase on last year.
But gaps remain. Not all accounts or transactions are covered under the mandatory rules, and some scams fall outside the regulator’s defined scope. Many victims still face uncertainty, especially when criminals lure them away from regulated platforms and into off-platform communication.
Fraudsters are innovating faster than the systems designed to stop them, but there are a few things you can do to protect yourself from investment scams and dramatically cut your risk. Before investing:
- Look up the firm on the Financial Conduct Authority (FCA) register
- Treat unsolicited investment offers as a red flag
- Be wary of adverts promising unrealistically high returns
- Don’t rely on endorsements or testimonials — they are easy to fake
- Avoid sending money to “safe accounts”, crypto wallets or offshore platforms
- If you’re ever in doubt, pause — scammers are experts at creating false urgency.
If you’ve already been targeted by an investment scam, you’re not alone, and you might be able to claim your money back under the APP reimbursement rules. Read our guide on how to get your money back after APP fraud — a plain-English walkthrough of the rules and your rights.
