Savers and investors should exercise extra caution as the cost of financial fraud rises.

The National Fraud Database reports that 444,000 cases were recorded in 2025 – the highest number in a single year.

Many increasingly sophisticated frauds specifically target investors, with the City of London Police estimating than £2.4m a day was lost in investment scams last year.

A range of scams has been developed to target both older and younger investors.

Older targets

Older savers need to watch out for pension liberation scams, which claim – wrongly – that you can either access pension funds early or receive a higher return by transferring your money into a new account or fund they recommend.

If the fraudsters invest this money at all, it’s likely to be in high-risk, high-charging funds, often based overseas, where there is a real danger you can lose significant amounts. Many people have seen their retirement savings disappear completely.

The rise of ‘finfluencers’

Younger investors are more vulnerable to targeting from so-called ‘finfluencers’ on social media platforms.

Up to two in five people may now seek financial guidance or information on social media, leaving them exposed to poor-quality advice and potential scams. Some social media personalities may make false and unsubstantiated claims about likely investment returns. In some cases they have been paid by a third party to promote products online, which is illegal under UK financial regulations.

Concerns about the proliferation of the ‘finfluencers’ has led to more robust enforcement action in the UK, with seven reality TV stars in the UK being fined.

As with all financial planning, encouraging discussion with a professional is highly advisable.