Investment scams are rapidly increasing across the United Kingdom, with fake cryptocurrency schemes emerging as the leading cause of financial losses, according to new banking industry data.
Figures from UK Finance reveal that the total amount lost to investment scams has jumped by 55% in the past year, reaching £97.7 million in just the first six months of 2025. That equates to more than £500,000 stolen every day. Overall, fraud losses rose by 3% to £629 million over the same period.
These scams often lure victims with the promise of high returns, persuading them to transfer money into non-existent funds or fraudulent investment platforms. While fraudsters may use assets such as gold, property, and carbon credits, fake cryptocurrency investments are believed to dominate the scam market.
UK Finance stated that “an ongoing prevalence of scams related to cryptocurrencies and the promise of significant returns advertised on social media” continues to drive the rise in fraud.
Victims are frequently targeted through fake social media adverts, deepfake videos, or fabricated news stories. The scams typically begin with small investments – sometimes as little as £250 – which appear to grow rapidly through fake trading dashboards. However, when victims attempt to withdraw their supposed profits, they are told to pay additional “fees” or “taxes”, losing even more money.
Earlier this year, The Guardian reported on a major crypto scam based in Georgia that defrauded UK residents of £9 million. The scheme used deepfake videos featuring public figures such as money expert Martin Lewis to appear legitimate. Some victims, including professionals in the financial sector, were tricked into losing hundreds of thousands of pounds.
UK Finance’s findings are likely to fuel pressure on cryptocurrency firms and trade bodies to play a greater role in combating fraud. On Wednesday, Stop Scams UK hosted a high-level meeting attended by the Bank of England governor Andrew Bailey and the fraud minister Lord Hanson. The event brought together leaders from the banking, telecoms, and technology sectors to discuss coordinated efforts to tackle fraud.
UK Finance is urging the government to ensure that “all sectors are accountable in preventing fraud” as part of its forthcoming fraud strategy.
Romance scams also saw a worrying 35% increase, while contactless card fraud rose by 27% in the first half of 2025. Experts warn that the true scale of losses is likely much higher, as many victims do not report being scammed due to embarrassment or shame.
The Payments Association criticised UK policymakers for failing “to address the main issue: blocking fraud at source, preventing crime from happening and mandating responsibility for social media”.
Richard Daniels, director of fraud at TSB, said the growing problem is “being driven and enabled by vulnerabilities in other sectors – especially social media”. He urged phone companies and online platforms to “urgently act to cut scam content off at source”.
