Sir Richard Branson has warned that “terrifyingly deceptive” criminals are using his name to dupe people into buying fake investments.

The businessman has spoken out over the scams after becoming “increasingly frustrated by fraudsters claiming that he, or his companies, are involved”, according to The City of London Police.

The force said new statistics showed a “shocking rise” in fraud relating to “binary options”, which are not regulated by the FCA. Investments in these options are not protected by the complaints and compensation scheme.

The FCA has issued a warning regarding fraud linked to the trade and some countries have banned the trading of binary options.

Fraudsters often use “aggressive sales techniques or names of prominent people or business locations” to entice victims to invest, police said.

Action Fraud, the national fraud and cyber crime reporting centre, has reported a large increase in reports of binary options fraud with the number of reports tripling in the last financial year, with the financial losses increasing from £2million to £13million during the same period.

Fraudsters posing as Binary Options traders on social networks “often use the promise of unrealistically high returns on ‘investments’ to lure potential victims”, police said.

Victims have contacted Mr Branson when they have discovered that their investments are worthless or non-existent.

Sir Richard Branson, Virgin Group Founder, said: “I am determined to prevent anyone being confused into giving money or their personal information away on a false pretence. These scams can be terrifyingly deceptive and I would urge everyone to look out for these stories and report them as soon as you see them.”

Detective Superintendent Glenn Maleary said: “Action Fraud and the City of London Police have seen an increase in binary options fraud in the last two of years. Opportunist fraudsters have taken advantage of an unregulated market and done everything can to defraud unsuspecting investors.

“Anyone who invests in binary options should be vigilant about who they are trading with and should follow our protection advice to ensure that they don’t fall victim to what is becoming a commonplace investment scam”.