POLICE have issued advice after new figures revealed that over 350 reports of investment fraud were made in South Yorkshire last year.

New data from Action Fraud revealed that 354 reports of investment fraud were made by people in South Yorkshire in 2024. This resulted in a reported total financial loss of £6,102,931 – averaging around £17,200 per report.

Investment fraud occurs when criminals approach individuals, often out of the blue, and persuade them to invest in schemes or products that are either worthless or entirely fictitious.

Fraudsters may claim to offer opportunities in foreign exchange, gold and other valuable metals, overseas time-shares, or cryptocurrency, promising unrealistically high returns that far exceed normal market trends.

Fraud Protect Officer Charlotte Platts said: “This type of fraud can impact anyone. Nationally people aged 35-44 were more likely to be targeted for investment fraud, while those aged 55-64 suffered the greatest financial loss – so it is important everyone is aware of the signs.

“We want to re-emphasise the useful mantra of ‘if it looks too good to be true it almost certainly is’. Fraudsters will often be very skilled in what they do – acting in a deceiving and manipulative way to scam their victims. Don’t be drawn in by the promise of getting rich quick or of making ‘easy money’.

“We urge you to do your research independently, check if the company is FCA registered and never take financial advice via social media or from people who have approached you out of the blue. If it were that easy to make profit on an investment, we would all know about it.”

As a general guideline, legitimate investments in the FTSE 100 typically yield annual returns of 4-5.5 per cent. Any individual or company promising guaranteed returns of 10 per cent, 12 per cent or even 20 per cent should be treated with extreme caution, as such claims fall well outside standard market expectations.

What to look out for:

Being approached via social media: the use of social media platforms as an enabler was identified in 36 per cent of the reports, with WhatsApp being the most prevalent. If you are approached, out of the blue, by someone telling you they can make you guaranteed returns on an investment, then block the number and don’t respond. For example, on Whatsapp you can do this by pressing and holding the message bubble, select ‘Report’ and then follow the instructions.

Investment opportunities that mention cryptocurrency, trading or stocks and shares: cryptocurrency and trading (unspecified) alone made up 75 per cent of all commodity types mentioned in Action Fraud reports. These two categories hugely outweigh traditional investment in commodities like natural resources (oil and gas), energy, precious metals, alcohol and forex (foreign exchange) that were mentioned in fraud reports.

An advert which uses a well-known celebrity: over £10m was lost in 2024 to fraudsters who convinced victims to invest by using an influential identity like Martin Lewis, Elon Musk or Jeremy Clarkson. AI generated images and videos were produced which helped to promote the bogus investment schemes.

How to protect yourself from investment fraud:

Investment opportunities: don’t be rushed into making an investment. Remember, legitimate organisations will never pressure you into investing on the spot.

Seek advice first: before making significant financial decisions, speak with trusted friends or family members, or seek professional independent advice.

FCA register: use the Financial Conduct Authority’s (FCA) register to check if the company is regulated by the FCA. If you deal with a firm (or individual) that isn’t regulated, you may not be covered by the Financial Ombudsman Service (FOS) if things go wrong and you lose your money.

For more information about how to invest safely, please visit: https://www.fca.org.uk/scamsmart

What to do if you’ve been a victim of investment fraud:

You could be targeted again: fraudsters sometimes re-establish contact with previous victims claiming that they can help them recover lost money, this is just a secondary scam. Hang up on any callers that claim they can get your money back for you.

Identity theft: if you suspect your identity may have been stolen, you can check your credit rating quickly and easily online. You should do this every few months anyway, using a reputable service provider and follow up on any unexpected or suspicious results.

Legal advice: in many cases of fraud there is a close correlation between what may be considered fraud and the civil tort of deceit and/or breach of contract, for which there are civil litigation options. We would always advise that you seek professional legal advice or contact Citizens Advice to understand your options.

You can also contact the Financial Conduct Authority’s consumer helpline on 0800 111 6768 or report suspicious businesses or individuals by using the reporting form on their website.

If you live in England, Wales and Northern Ireland and have been a victim of fraud or cybercrime, report it at www.actionfraud.police.uk or by calling 0300 123 2040.

Find out how to protect yourself from fraud: https://stopthinkfraud.campaign.gov.uk