According to Barclays research, investment scams accounted for a third (33%) of the money clients lost to fraudsters in 2023, an increase of 23% from the previous year. Out of all fraud categories, investment scams accounted for the largest portion of overall claim values, and their volume was growing at a rate of about one-third.

since per Barclays, the reason behind this surge is that con artists are utilizing social media platforms to spread fraudulent financial advertisements, since over 60% of investment frauds currently occur there.

According to data from Barclays, individuals in the millennial generation and men are especially vulnerable to investment scams. The average claim made by a man jumps to £16,306, and 48% of all investment scams involve young people between the ages of 21 and 40.

"It's worrying to see such a rise in investment scams," says Barclays head of fraud strategy Stephanie Mac Sweeney. "Victims are often heartlessly scammed out of large sums of money that they have been saving for their future." The financial sector puts a lot of effort into educating the public, spotting fraud, and stopping it, but the only way to truly affect change is to take these schemes on at their source. Social media companies need to take accountability, fulfill their commitments, and provide a strong verification mechanism as the majority of investment frauds now occur on their platforms. This would help prevent innocent people from falling for false investment advertisements.