Investment fraud in the UK has surged dramatically, with losses exceeding £220 million in the past year, according to a new report. Scams involving gold, cryptocurrencies, and wine have become increasingly sophisticated as criminals leverage artificial intelligence to execute larger-scale fraud operations.
Record losses from investment scams
UK banks reported nearly 15,000 investment scams in 2025, with total losses reaching approximately £221.5 million. This represents a 40% increase compared to the previous year, according to data from UK Finance, the trade body for the banking and financial services industry.
Ruth Ray, managing director for economic crime at UK Finance, explained that investment fraud is particularly attractive to criminals due to the potential for high returns. Advances in AI technology have made it easier to perpetrate these scams on a much larger scale than before.
Common scam tactics
Typically, fraudsters promise high returns on investments ranging from gold, property, and carbon credits to cryptocurrencies and wine. Last week, the Bank of England warned the public about AI-generated scams after deepfake videos of Reform leader Nigel Farage appeared to show him fighting Bank governor Andrew Bailey online.
Ray stated: “AI is making that easier because it allows you to make all of your communications more sophisticated. It allows you to spin up websites quickly and easily to make your business look legitimate when it may be otherwise.”
She added that AI enables criminals to send out messages at scale, contact users by telephone at scale, and mimic voices of celebrities or even people’s friends and family to deceive victims into believing they are dealing with a legitimate entity.
Overall fraud landscape
The annual fraud report revealed that a total of £1.28 billion was stolen last year, an increase of 4%, with more than 4 million cases reported. This equates to eight people being defrauded of a total of £2,500 every minute, according to UK Finance.
Authorised push payment (APP) fraud, where criminals trick individuals into transferring money to accounts they control, rose by nearly 20%. Purchase scams, in which people are duped into paying for nonexistent goods or services, also increased. Romance fraud, where victims pay individuals they believe they are in a relationship with, has also seen a rise.
Reimbursement and calls for action
The mandatory fraud reimbursement scheme for APP fraud reimbursed 88% of losses, the report said. However, there were repeated calls for tech platforms, where many scams originate, to be forced to verify online sellers and contribute more money to fraud prevention.
Ray said tech companies have the ability to tackle more fraud but are not investing in the necessary expertise. Meta and TikTok were approached for comment.
“Given most APP fraud still starts via online tech platforms or via telecoms, we urgently need stronger, enforceable responsibilities to be placed on these sectors. This is the way to reduce the harm and stop criminals and tech companies profiting from these devastating crimes,” Ray said.
