Between September 2019 and September 2020, Action Fraud received over 17,000 reports of investment fraud amounting to £657.4m in reported losses.

This represents a 28% increase when compared to the same period last year.

According to Action Fraud, reports spiked in May, June, July, August and September 2020.

Recent figures from UK Finance showed that criminals are exploiting the Coronavirus pandemic which has fuelled a big rise in online fraud. It said losses to investment scams rose 27% in the first half of 2020. 

In July, the Personal Finance Society launched a campaign to encourage Financial Planners to share warning signs of Coronavirus scams with their clients. The professional body said that Financial Planners have a vital role to play in stopping scammers from getting their hands on their clients’ cash. 

Following these latest figures, Action Fraud has urged consumers to seek regulated advice on investment opportunities. It said that whilst paying for advice might seem like an unnecessary expense, it would protect investors from being scammed. 

Pauline Smith, head of Action Fraud, said: “The coronavirus outbreak sadly led to many people losing their job or having to manage with a lower income than they were used to. It has also caused a shake up in the economy in general, with interest rates falling, in a similar way to the financial crisis of 2008. All of these factors provide criminals with the opportunity to attract more people with their fraudulent investment schemes.

“Preying on people when they are at their most vulnerable really shows how low these criminals will stoop to make a profit for themselves. That is why we are working hard with our law enforcement colleagues, and partners in the finance industry, to tackle investment fraud and empower the public to spot a scam.”