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Fintech has broadened financial opportunities for investors, businesses, and everyday people who want an easier and more efficient way to manage their wealth.
The compromise, though, is that consumers are more vulnerable to financial crime when using online money management tools.
You are likely already aware of how scammers operate – in a broad sense, at least. That said, you may not be aware of the scale of the problem we face in the UK nor the constantly advancing methods that financial criminals use.
In this guide, we will delve into the latest trends in online financial fraud, giving you better oversight of how scammers dupe even the savviest of individuals into parting with their wealth.
Key scam statistics for 2026 that everyone should know about
AI-enabled fraud is on the rise
AI is changing our lives more by the day, and in many cases, its contribution is positive. However, like any advanced tool, it could be considered dangerous in the wrong hands.
- The latest forecasts estimate that more than £1 billion was lost to fraud in the UK in 2025, and advancements in AI have played a big role. As UK Finance writes, “From hyper-realistic deepfakes to phishing emails generated in seconds and tailored precisely to a company’s structure and tone, AI is industrialising deception.” [1]
- The number of reported fraud cases rose to 444,000 last year – a 6% increase from 2024 – with The Guardian reporting that this rise was “fuelled by AI”. [2]
Impersonation scams make up a large proportion of UK fraud cases
You might think of financial criminals as those who indiscriminately hack into consumers’ financial accounts in an attempt to steal their money.
While this does happen, research indicates that you may be more likely to be scammed by someone impersonating a known person or institution.
Some examples include:
- Fictitious text messages, WhatsApp messages, or emails from “trusted sources” like the NHS or HMRC, which may ask for personal details and even offer you money.
- Being contacted by a child, parent, friend, or colleague asking for financial help due to a “crisis” they’re in. This might happen using voice cloning technology, or via WhatsApp or email.
- Romance scams, in which scammers pose as a potential partner and get to know the consumer, winning their trust before asking them for money or the details of their bank accounts.
Impersonation scams and takeover of customer accounts accounted for 72% of reported cases in 2025. [3]
2 clear ways to deduce whether you are being targeted by a financial criminal
1. Is the request urgent, and if so, why?
Financial criminals use high-pressure tactics to rush consumers into a decision.
Usually, this comes in the form of a fabricated emergency, or a limited-time deal (such as an investment opportunity or even a pension transfer that promises high returns).
With little time to sit back and evaluate the situation, you may not notice the red flags that tell you something is not quite right.
So, if you suspect you are being targeted:
- Contact the person or institution they are impersonating to verify whether the contact is legitimate.
- If they claim to be a financial professional, look for their details on the Financial Services Register and measure this up against the details they have provided.
- Do not give any details away, and stop communicating, until you are sure you can proceed.
No financial professional, institution, or loved one will ever attempt to pressure you into a financial decision. If someone is, they are likely to be doing so for the wrong reasons.
2. Is the offer too good to be true?
According to the BBC, investment fraud was the second most common method used by financial criminals in the first six months of 2025 but led to the highest number of losses.
Across 6,500 reports of investment fraud, consumers lost a total of £98 million. [4]
Many investment scammers offer victims the chance to invest in new, less-well-known assets, such as cryptocurrency. While there are legitimate ways to invest in crypto (although it is unsuitable for most people), criminals are taking advantage of its lack of robust regulation in the UK.
Similarly, they will often purport to have a “risk-free opportunity” or to be able to “double your money in five years”. It sounds preposterous when you already know it is a scam; however, it is easy to be caught in the moment and pursue an opportunity that claims to be able to grow your wealth.
Remember: if an opportunity seems too good to be true, it probably is.
At IPS Capital, keeping your wealth safe is our priority
If you already work with us at IPS Capital, you will know that our number one priority is keeping your life’s work safe in a world of increasing threats to consumer finances.
We invest in sector-leading IT protections and are always available for a direct conversation if you are unsure about a financial product, investment selection, or another security issue.
To speak to a member of our experienced team about anything you have read here, contact your Relationship Manager or email info@ipscap.com for more information.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Cryptoassets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.
[1] 02.03.26 Financial crime in 2026: key trends shaping the UK’s horizon UK Finance
[2] 12.03.26 AI scams drove UK reports of fraud to record 444,000 last year The Guardian
[3] 12.03.26 Fraudscape 2026: Fraud cases hit record highs as criminals adapt and scale Cifas
[4] 03.11.25 Over £620 million lost to fraud in first half of 2025 BBC
