Police issue warning after £17m lost to investment fraud in West Midlands
The campaign from Action Fraud to highlight the dangers of investment
West Midlands Police have issued have teamed up with Action Fraud, to highlight the dangers of investment fraud and educate the public on how to protect themselves from becoming a victim to these scams.
Data from Action Fraud reveals that people aged 35-44 were more likely to be targeted for investment fraud, while those aged 55-64 suffered the greatest financial losses.
Investment fraud occurs when criminals approach individuals, often out of the blue, and persuade them to invest in schemes or products that are either worthless or entirely fictitious. Fraudsters may claim to offer opportunities in foreign exchange, gold and other valuable metals, overseas time-shares, or cryptocurrency, promising unrealistically high returns that far exceed normal market trends.
In 2024, Action Fraud received 25,843 reports related to investment fraud, with victims collectively losing £649,062,146.
In the West Midlands alone, there were 899 reported cases of investment fraud leading to financial losses amounting to £17,253,906.
While the number of reports represents a 7 per cent decrease compared to 2023, the total financial loss saw a 13 per cent increase, highlighting that fewer but potentially larger scams were in operation.
Cryptocurrency continued to be the most common asset fraudsters claimed to be investing in, accounting for 66 per cent of all reports - a 16 per cent increase from the previous year.
What to look out for:
- Being approached via social media
- Investment opportunities that mention cryptocurrency, trading or stocks and shares
- An advert which uses a well-known celebrity
Khatija Nichols from the Economic Crime Unit said: “The risks of investment fraud are real, but so are the steps we can take to protect ourselves.
"Awareness is the first line of defence and by staying informed, we can all become less vulnerable to these scams.
“A good rule to follow is ‘If it sounds too good to be true, it probably is.’ Scammers are skilled at creating convincing offers, often guaranteeing big returns quickly.
"But don’t let the promise of easy money lure you, as investing is never that simple.
“Whether you’re thinking about investing £200 or £200,000, it’s important to be cautious. Always research thoroughly, check if the company is registered with the FCA, and avoid taking advice from people who reach out unexpectedly or from social media.
"Genuine opportunities are clear and trustworthy, and quick profits are rarely the reality.”
Rayo Premium