Being regularly confronted with scams of one form or another has become an unfortunate feature of modern life. This applies in investing just as much as anywhere else.
Data from the City of London police shows victims of investment fraud lost an average of £1,675 every minute in 2025 with 34,673 people reporting fraud of this nature, up 31% from the year before. Losses averaged £25,612 – and this often encompassed people’s pension pots and other long-term investments – having a devasting impact.
Fraudsters are becoming increasingly sophisticated in their approach. Here are some of the big trends police officers dealing with fraud have identified and how you can avoid being drawn in.
Bogus online platforms and schemes
Whether it’s a fake trading platform or a bond scheme marketed on social media offering unrealistic returns, there are lots of ways scammers look to mispresent themselves to take your hard-earned cash.
It’s always important to understand who you are investing with. A good solution is to use the FCA’s firm checker tool before making any kind of investment to ensure the firm or individual offering it is authorised.
Sometimes cloned websites are used to make it look like you’re investing through an authorised firm. Carefully scan the web address of the site you are on – are there subtle misspellings? Are there broken layouts or poor-quality images?
If what’s on offer looks too good to be true it probably is. True investing is about generating wealth slowly over time. It is not a get rich quick scheme.
AI-manipulated videos and deepfakes
Deepfake and AI-manipulated videos, which use the face and voice of trusted figures, such as Martin Lewis, to trick you into parting with your cash, are an increasingly commonplace trend. They are also becoming more convincing as technology develops.
It’s completely understandable that people look to those with expertise when they’re trying to work out where to put their money. However, most genuine experts will be wary of recommending specific investment platforms or products so, if you see a video on social media where they do, it is probably worth treating it with a healthy degree of scepticism.
Recovery fraud
Another approach which is increasingly popular with fraudsters is so-called ‘recovery fraud’. This particularly cruel strategy involves contacting previous victims of scams in the guise of a lawyer, specialist recovery firm or even law enforcement, with a promise of retrieving stolen money but instead charging fees upfront and then disappearing.
If you have been unfortunate enough to be a victim of investment fraud, be extremely wary of unsolicited contact about it. You should never pay upfront fees and don’t share any of your personal or banking details with anyone contacting you for this reason.
Stop and think – a scam checklist
Is the offer too good to be true? – look at how the promised returns compare with the average annual return from the stock market (roughly 7%) and be wary of anything offering ‘guaranteed returns’. In investing, little is ever guaranteed.
Are you being contacted unexpectedly? – whether by text, post, email, social media or in person.
Are you being pressured to act quickly? – with a bonus or discount available if you invest right away or a time limit on participating. Or time pressure to ‘save’ information they claim to have been already stolen.
Are you being given an ‘exclusive’ offer? – you might hear you’ve been specifically chosen for an opportunity and be told to keep it under wraps.
Is flattery being employed? – a fraudster might try and get you onside by complimenting your financial acumen or some other quality.
The FCA’s ‘ScamSmart’ website is a great resource to keep up to date on the latest tactics being deployed by fraudsters.
Tom Sieber: Content Editor
Tom Sieber is AJ Bell's Content Editor. He was previously the Editor of Shares Magazine. He has been with the business since 2012.
Tom is a regular contributor to the AJ Bell Money & Markets...
