Barclays Bank is urging social media platforms to swiftly enhance the verification process for financial advertisements following a significant increase in investment scams.
According to Barclays data, investment scams represented 33% of all financial losses incurred by customers in 2023, marking a 23% year-over-year rise. Among various scam types, investment scams constitute the largest portion of total claim values, with the number of such scams increasing by nearly one-third.
The surge is largely attributed to scammers exploiting unverified financial advertisements on social media, with over 60% of investment scams occurring on these platforms.
Barclays data indicates that millennials and men are particularly vulnerable, as the average claim for men affected by investment scams reaches £16,306, while individuals aged 21-40 make up 48% of all investment scam claims.
Stephanie Mac Sweeney, head of fraud strategy at Barclays, commented, “It’s worrying to see such a rise in investment scams, with victims often losing substantial amounts of money intended for their future. While the banking industry strives to educate and tackle these scams, real change can only happen by addressing the root causes. With the majority of investment scams occurring on their platforms, social media companies must take responsibility, fulfill their commitments, and implement a strong verification system to protect innocent individuals from fraudulent investment adverts.”