Investment scams surge to account for nearly half of all Barclays customer losses in 2025

New data from Barclays reveals investment scams now account for 47p in every £1 claimed by victims, marking a significant increase from 39p in 2024 and just 32p in 2023. The banking giant's analysis shows that half of UK adults have been targeted by scams this year, with younger generations particularly vulnerable—64% of Gen Z respondents reported being approached by fraudsters.

While purchase scams maintained their position as the most common type, representing 71% of all claims, the financial impact of investment fraud has grown substantially. The findings highlight an evolving threat landscape where social media platforms serve as the origin point for one in three investment scams, and text-based fraud attempts have surged by 40% compared to the previous year.

Background and Context

The three-year upward trend in investment scam losses suggests fraudsters are increasingly targeting victims with higher-stakes opportunities. According to Barclays' data, this shift coincides with growing public skepticism toward online security, with 75% of customers believing artificial intelligence has made scams more convincing and harder to detect.

The resurgence of SMS-based scams represents a notable change in fraudsters' tactics, as they exploit consumers' declining confidence in digital channels. This evolution underscores the adaptive nature of criminal enterprises seeking new vulnerabilities in an increasingly connected financial ecosystem.

Key Figures and Entities

Kirsty Adams, Barclays' Fraud and Scams Expert, noted: "Once again, scammers adopted new tactics in 2025, and as a result we saw a shift in the nature of scams reported by our customers. While fraudsters targeted victims with higher-stakes opportunities, we witnessed the resurgence of scams coming via text message, as confidence in online channels has declined."

Adams highlighted particular concern for the upcoming festive sales period, warning that "scammers will attempt to take advantage of shoppers." However, she expressed optimism about future developments, stating, "Looking ahead to 2026, we're hopeful we will see continued progress in the fight against fraud, in the form of cross-industry collaboration."

Legal and Financial Mechanisms

Investment scams typically involve sophisticated approaches that promise high returns with minimal risk, often using social proof and fabricated credentials to establish credibility. The financial impact on victims extends beyond the initial loss, with many experiencing lasting psychological and financial consequences.

Barclays advises customers to recognize that legitimate banking institutions will never request debit card PINs, passwords, or complete online banking login details. The bank recommends verifying contact information through official websites rather than trusting unsolicited communications, regardless of their apparent authenticity.

When making online purchases or investment decisions, consumers should resist pressure tactics that create artificial urgency. One-time passcodes should be carefully reviewed before use, with any discrepancy prompting immediate termination of the transaction.

International Implications and Policy Response

The increasing sophistication of scams, particularly those enhanced by artificial intelligence, presents challenges for financial institutions and regulators worldwide. The cross-border nature of many fraudulent operations complicates enforcement efforts and necessitates international cooperation.

Industry-wide collaboration, as referenced by Barclays' expert, represents a critical component of an effective response to evolving fraud tactics. Financial institutions, technology companies, and regulatory bodies face mounting pressure to develop more robust detection systems and consumer education initiatives.

Sources

This report is based on Barclays' 2025 scams data and analysis provided by their Fraud and Scams Expert Kirsty Adams. The information covers fraud trends affecting UK consumers between 2023 and 2025.