Millions of people across the UK are being targeted by increasingly sophisticated money scams, as fraudsters use fake investment opportunities, impersonation tactics and AI-generated content to steal over £1.28 billion a year.
From cloned bank texts to WhatsApp family scams, fraudsters are exploiting everyday platforms to appear more convincing than ever. With 66% of authorised push payment (APP) fraud cases starting online, a single text, call or social media message can quickly turn into a life-changing financial loss.
Brits lost more than £897 million to investment and pension scams last year, with people aged 55-64 suffering the greatest financial losses, according to industry data. For some, a single scam can wipe out retirement savings or a house deposit.
Tim Grimsditch, Managing Director at Unbiased, the UK’s leading financial advice platform, has highlighted the most common scam tactics catching Brits out daily and shared expert tips to help people spot fraud early and safeguard their finances.
1. Investment scams
Investment fraud was responsible for £879.8 million in reported losses in 2025, making it one of the costliest forms of fraud in the UK. Criminals often impersonate legitimate investment firms or advisers, promising high returns with little risk. The most recent detailed breakdown (2024) shows people aged 55-64 suffered the greatest financial losses, with cryptocurrency accounting for 66% of all investment fraud reports.
Legitimate investment opportunities don’t disappear overnight, so seek regulated financial advice before making major decisions.
2. Pension scams
Pension scammers target people approaching or entering retirement, encouraging them to transfer their pension into fraudulent schemes or access their savings through illegal offers. According to The Pensions Regulator, pension fraud losses reached £17.5 million, with average losses of around £34,000 per victim.
In order to protect yourself, be suspicious of unexpected contact. Treat unsolicited calls, emails, texts, social media messages, or WhatsApp messages about your pension with caution. Before dealing with any firm or individual offering pension advice or transfers, check they are authorised by the Financial Conduct Authority (FCA).
3. Impersonation scams
Scammers pretend to be from banks, HMRC, utility providers or the police, creating a sense of urgency to pressure people into transferring money or revealing personal information. These scams exploit trust in familiar organisations.
A common tactic is to create panic by claiming your account has been compromised, you owe tax, or a payment is overdue. Never act on pressure or urgency and never share sensitive information.
4. AI-powered scams and deepfakes
Criminals are increasingly using artificial intelligence to create realistic voice notes, videos and messages that appear genuine, making it harder than ever to identify fraudulent communications.
5. Purchase scams
Consumers pay for goods advertised online that are counterfeit, never arrive or simply do not exist. These remain one of the most common forms of fraud originating on online marketplaces and social media.
6. WhatsApp and family impersonation scams
Fraudsters pose as relatives claiming they’ve lost their phone or urgently need money transferred. These scams prey on emotional instincts to help loved ones.
Tim’s advice to help protect your money:
· Pause before acting: Scammers rely on urgency. Take time to verify any unexpected request before responding.
· Verify independently: Never use phone numbers or links provided in a message. Contact organisations directly through official channels.
· Check authorisation: Ensure firms and advisers are FCA-registered before handing over money. Scammers frequently clone legitimate businesses.
· Seek regulated advice: Before transferring pension savings, investing a lump sum, or responding to an unexpected financial opportunity, speaking to a regulated financial adviser can help consumers identify warning signs and verify whether an opportunity is legitimate.
Tim comments: “The scams causing the greatest financial damage aren’t usually small purchase scams; they’re investment and pension scams that can wipe out years of carefully built savings.
“What’s particularly concerning is that the people suffering the biggest losses are often those approaching retirement or managing significant assets for the first time.”
If you think you’ve been targeted, stop all contact immediately, contact your bank, report it to Report Fraud (formerly Action Fraud), and keep records of all communications.
For help finding a regulated financial adviser before making important investment, pension or retirement decisions, visit: https://www.unbiased.co.uk
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