Fraudsters stole an estimated £221.5 million through investment scams in 2025, as criminals increasingly exploit online platforms and advanced technologies like artificial intelligence to target individuals. This figure represents a significant portion of the total £1.3 billion unknowingly handed over to fraudsters by Britons last year, an increase of 4% compared to 2024, according to trade body UK Finance.
Investment fraud emerged as the leading category of authorised push payment (APP) fraud, where victims are manipulated into directly authorising payments to scammers. This type of deception accounted for nearly half of all APP fraud losses, with the vast majority (66%) initiating online. The internet provides a wide net for criminals to promote sham 'get rich quick' schemes, making it easier to ensnare unsuspecting victims.
The landscape of fraud is evolving rapidly, with artificial intelligence now playing a crucial role in enhancing the sophistication of these criminal operations. Experts note that AI-generated images and videos, including deepfakes of prominent financial figures such as Bank of England Governor Andrew Bailey or Blackrock CEO Larry Fink, are being used to lend false credibility to fraudulent schemes. A survey of fraud management professionals by BioCatch indicated that 84% believe AI has heightened the complexity of scams, making deepfakes particularly challenging to identify.
Ruth Ray, managing director of economic crime at UK Finance, highlighted the industrial scale of fraud, noting its detrimental impact on individuals, businesses, and the broader UK economy, often funding serious organised crime globally. While the financial sector invests heavily in customer protection, Ray emphasised that banks cannot be the sole defence. She advocated for stronger, enforceable responsibilities for online technology platforms to prevent criminals from profiting through fraudulent activities.
Beyond investment fraud, other types of APP fraud are also on the rise. Purchase scams, where consumers pay for goods that are never received, saw losses increase by 20% to £118.1 million in 2025, making up 71% of all APP fraud. Romance fraud, where victims are persuaded to send money to individuals they believe they are in a relationship with but have never met, also increased by 22% to £39.2 million last year.
To protect themselves, individuals are advised to never disclose personal information without verifying the legitimacy of the request and to ensure their devices have up-to-date antivirus software. Vigilance against phishing attempts, characterised by grammatical errors, urgent language, and suspicious email addresses, is also crucial. If fraud is suspected, contacting your bank immediately and reporting to Action Fraud is essential. The 159 service can also connect individuals directly to their bank if they receive a suspicious call.