The scams have caused huge losses to the bank's current account customers, accounting for the highest proportion of funds lost to fraudsters, with the average claim exceeding £14,000.

Barclays warns of alarming rise in investment scams

Alarmingly, six out of every 10 investment scams now occur on social media platforms, which are being used by fraudsters to promote unsubstantiated financial advertisements. Millennials and men are particularly vulnerable, with the average investment fraud claim for men rising to £16,306 and 21-40 year olds accounting for nearly half of all investment fraud claims.

Stephanie Mac Sweeney, Head of Fraud Strategy at Barclays, says: "It's worrying that there has been such a rise in investment fraud - victims are often relentlessly conned out of large sums of money they have saved for the future." She emphasized, "While the banking industry has been working hard to combat fraud, real change can only be achieved by targeting the source of these frauds."

Mac Sweeney called on social media companies to take responsibility and provide a robust verification system to protect innocent people from falling victim to fraudulent investment ads.

Barclays offers three useful tips for recognizing investment scams: pause before committing to an investment, be wary of investment opportunities that seem too good to be true, and investigate investment opportunities thoroughly.

FCA data confirms worrying trend

Data from the Financial Conduct Authority's (FCA) Consumer Helpline highlights the extent of the problem, with calls relating to investment scams jumping 193% in the last five years. However, vigilant investors have managed to save £2 million by scrutinizing details and identifying dubious investment opportunities.

The FCA's latest report, published two months ago, shows that the regulator issued a record 2,286 fraud warnings on its public warning list, a 21% increase on the 1,882 warnings issued in 2022.A key element of the FCA's strategy is to issue public warnings against unregulated firms and individuals who seek to promote fraudulent investment opportunities.

Barclays is committed to the Online Fraud Charter, a voluntary agreement between the Government and the technology industry, and urges social media platforms to act swiftly to improve the verification of financial advertisements.

Barclays remains committed to working with all sectors to improve the financial futures of our clients, customers and communities.