The Financial Ombudsman Service (FOS) found that investment scams had the biggest increase as a proportion of “authorised” scam complaints, according to its quarterly data for the first quarter of the 2022/23 financial year.
This is despite the number of “authorised” scam complaints decreasing overall.
The FOS received around 1,900 complaints about “authorised” scams in Q1 2022/23, compared to around 2,380 in the first quarter of 2021/22. The Financial Ombudsman upheld around 60% of investment fraud complaints in the consumers’ favour.
| Type of scam | Q1 2021/22 | Q1 2022/23 |
| Investment scams | 21% (500 complaints) | 30% (570 complaints) |
| Impersonation scams, including ‘safe account’ | 43% (1,023 complaints) | 33% (627 complaints) |
| Buying goods not received | 25% (595 complaints) | 25% (475 complaints) |
| Other – including romance scam | 11% (262 complaints) | 12% (228 complaints) |
Crypto scams
The FOS found that over half of the investment fraud complaints in Q1 2022/23 involved cryptocurrencies.
A typical cryptocurrency scam involves a consumer being persuaded to purchase a cryptocurrency through a legitimate intermediary and sending money to what they believe is a genuine investment platform, but which is in reality operated by fraudsters.
In cases of investment fraud, the FOS said it has seen examples of consumers being scammed out of tens or even hundreds of thousands of pounds.
Nausicaa Delfas, interim chief executive and chief ombudsman at the FOS, said: “Complaints about investment scams are currently the fastest growing type of fraud complaint that the Financial Ombudsman Service receives.
“We are concerned that, in current economic circumstances, people could be tempted to invest in fake investments. Our advice to consumers is be wary, conduct their own research, check the FCA register and contact the firm directly on the number listed.
“If people feel they have been treated unfairly by their bank, they should contact the Financial Ombudsman Service, and we will see whether we can help.”
