UK Finance report reveals £50.1m lost due to investment scams in 2018

Maria Nikolova

UK Finance members reported 84,624 incidents of authorised push payment scams with gross losses of £354.3 million in 2018.

The UK finance industry prevented £1.66 billion of unauthorised fraud during 2018, according to the latest report, Fraud the Facts 2019 published today from UK Finance.

A total of £1.20 billion was stolen by criminals committing fraud last year. This is comprised of:

  • £354 million in authorised fraud;
  • £845 million in unauthorised fraud.

In 2018, UK Finance members reported 84,624 incidents of authorised push payment (APP) scams with gross losses of £354.3 million.

A total of £50.1 million was lost to investment scams in 2018, with payment services providers subsequently able to return £3.9 million.

In an investment scam, a criminal convinces their victim to move their money to a fictitious fund or to pay for a fake investment. The criminal will usual promise a high return in order to entice their victim into making the transfer. These scams include investments in items such as gold, property, carbon credits, cryptocurrencies, land banks and wine. Cold calling, email, social media and letters are also used in investment scams, with criminals seeking to take advantage of recent pension reforms.

The nature of the scams means that the sums involved in individual cases can be higher, so while investment scams accounted for only 4% of the total number of APP scam cases, they accounted for 14% of the total value.

Earlier this month, the UK Financial Conduct Authority (FCA) published two pieces of research looking at UK consumer attitudes to cryptoassets.

The qualitative research indicated some potential harm, including that many consumers may not fully understand what they are purchasing. Findings from the survey show 73% of UK consumers surveyed do not know what a ‘cryptocurrency’ is or are unable to define it. Despite this lack of understanding, the cryptoasset owners interviewed were often looking for ways to ‘get rich quick’, citing friends, acquaintances and social media influencers as key motivations for buying cryptoassets.

Read this next

Digital Assets

SEC bypassed commission vote in approving Ethereum ETFs

The Securities and Exchange Commission’s (SEC) Trading and Markets Division has approved several spot Ethereum exchange-traded funds (ETFs) using delegated authority, rather than a vote by the full commission.


BlockDAG Presale Draws Massive $32.4M Hinting At its 30,000x ROI Potential, Overshadowing Retik Finance at Bitmart

Learn why BlockDAG’s innovative strategies and $32.4M presale success are making millionaires, overshadowing Retik Finance’s struggle on Bitmart.

Institutional FX

Malaysia’s exchange launches API for onboarding retail investors

“The Exchange actively listens to the evolving needs of our customers. This initiative is key in delivering on our commitment towards greater customer-centricity. We will continue to work closely with our POs and introduce service innovations to attract more investors, bolstering the competitiveness of our market.”

Fintech, Uncategorized

LiquidityBook welcomes JonesTrading to LBX Post-Trade Hub

“As we near the T+1 deadline, we are excited to continue helping firms achieve straight-through processing in addition to delivering new enhancements to our comprehensive range of cloud-native buy- and sell-side trading solutions.”


Should I Invest Today? Which Altcoins Could Make 2-5X Profits Amid the Latest News?

Investing in cryptocurrencies can be a journey full of surprises, given their volatile nature.

Executive Moves

Bakkt promotes Ray Kamrath to CCO of Crypto

Bakkt has promoted Ray Kamrath to Chief Commercial Officer of the company providing custody, trading, and onramps to the crypto space.

Industry News, Uncategorized

HSBC relocates US headquarters to The Spiral, New York

HSBC has opened its new U.S. headquarters at The Spiral, a renowned office building in New York City’s Hudson Yards neighborhood.


Best Cryptos to Buy Before the Real Bull Run Kicks Off

With the bull run of 2024 already underway, investors are eager to identify cryptocurrencies that promise significant growth.

Market News

This time is different – is it?

The stock market wants lower interest rates – or rather, it has been expecting them for months. Justified? The US economy looks very robust, so higher interest rates would actually be the order of the day.