£56 million lost to investment scams: Overconfident 25 to 34s among most at risk

£56 million lost to investment scams: Overconfident 25 to 34s among most at risk

VoM News Desk | May 15, 2025 | 05:47 PM IST | Articles/Editorials, Featured by VoM | Follow on Google News

£56 million lost to investment scams: Overconfident 25 to 34s among most at risk

Brits have lost £56 million to investment scams in just six months, amid Barclays’ report of a 29% surge in cases over the past year. In light of this, new research from the forex broker experts at BrokerChooser has uncovered that approximately 50 million people in the UK could be at risk of forex scams.^1,2

As part of their fraud-fighting initiatives, the forex broker experts surveyed a representative panel of 2,000 adults and asked how they would respond in 4 different scam scenarios. 9 in 10 people (91%) said they would act in a way that could expose them to fraud.

Key findings:

• Nearly one in three (30.95%) respondents lack confidence in spotting investment scams, with 45 to 54-year-olds (38.8%) being the least confident age group
• Young adults (25-34) are most likely to overestimate their confidence in spotting an investment scam, with many still willing to engage with suspicious platforms
• One in six Gen Zs (15.03%) would invest in a suspicious forex opportunity based on celebrity or influencer endorsements, despite how easily these can be faked with AI
• Women are more risk-aware than men, with just 10% saying they’d test a small deposit in a forex opportunity, compared to 17% of men.

Shockingly, nine in ten respondents (91%) overall said they would act in a way that could expose them to fraud. Question 4: ”How would you verify the legitimacy of a forex trading opportunity before investing?” had the highest proportion of respondents selecting risky answers, with almost one in four (23.15%) saying that they would ask the broker directly for copies of their licenses and certificates. 

This is a risky approach, as it relies entirely on trusting the word of the broker, who may provide forged or misleading documentation. Scammers often exploit this tactic by creating convincing fake credentials to appear legitimate, making direct engagement a potential trap rather than a form of due diligence.

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New insights from the forex broker experts at BrokerChooser found that one in three (30.95%) people lack confidence in their ability to spot an investment scam. Those aged 45 to 54 (38.8%) report the highest uncertainty, followed by 16 to 24-year-olds (33.72%), making them the demographic most vulnerable to investment fraud.

On the other hand, three in five people feel confident overall in their ability to identify an investment scam (60.20%), yet only 16.8% consider themselves ‘very confident’. This figure plummets to just 8.67% among over-55s, highlighting their risk.

More than three-quarters of young adults feel confident that they could spot an investment scam, but is this ability overestimated? 🤔

Meanwhile, young adults aged 25 to 34 appear to be the most self-assured, with over three-quarters (76.22%) feeling confident, and one in three (32.62%) rating themselves as ‘very confident’. But crucially, are people overestimating their ability to spot investment scams—and leaving themselves more vulnerable as a result?

Despite being the most confident in their scam-spotting abilities, those aged 25 to 34 were the most likely to turn to friends or family to check if they’ve heard of the platform or knew anyone who had invested (35.67%). This is a form of social proof that scammers often exploit, as friends and family can be just as misled, especially when early returns appear convincing.

This age group was also the most likely to say they’d test the platform with a small amount (28.35%), with almost a third unknowingly exposing themselves to greater risk. A classic scam tactic, scammers often fabricate early successes to lure people into making bigger investments later. 

Interestingly, the survey from the forex broker experts at BrokerChooser found that women are more risk-aware than men when it comes to forex opportunities, with just 10% saying they’d test a small deposit in a forex opportunity, compared to 17% of men.

Almost one in five (19.96%) Gen Z respondents say they’d be convinced to invest in a new forex platform based on screenshots of profitable trades. This is concerning given that two out of three forex customers typically lose money and the fact that 50% of fraud now involves the use of AI, which can be used to fake images. This tactic continues to sway younger, visually-oriented investors.^3,4 

Even more concerning, over a third of 25 to 34-year-olds (35.37%)—and nearly a quarter of 35 to 44-year-olds (23.68%)—say they’d trust testimonials from “other successful traders”. This is a fraudulent tactic commonly used in scams through fake or paid endorsements to create a false sense of credibility. 

In contrast, baby boomers appear more cautious, with just 6.55% trusting such testimonials, and only 12.66% saying a money-back guarantee would persuade them to invest. While that may sound reassuring, such promises only carry weight if backed by regulation and legal accountability.

Krisztián Gátonyi, from BrokerChooser, commented on the rise of investment scams:

“A quarter of young investors admit to making impulsive decisions in order to keep up with current investment trends, often leaving little time to properly evaluate the risks.⁵ Amid a sharp rise in investment scams, this behaviour is particularly dangerous – especially as fraudsters grow increasingly sophisticated in how they present themselves. 

With the rise of AI, we’re now seeing realistic fake websites, chatbot ‘advisors’, and even deep fake videos of celebrities endorsing bogus schemes. It’s becoming harder for even seasoned investors to separate genuine opportunities from high-tech fraud. A concerning new study reveals that participants were 22% more likely to invest in AI-enhanced scams than in traditional ones.⁶

While younger adults tend to feel more sure of themselves, some are still falling for red flags like promises of unrealistic returns, unregulated platforms claiming to be ‘pending approval’, or pressure to act fast. It’s critical that people learn to pause and verify – checking for official registration with financial regulators and scrutinising contact information. AI may be empowering scammers, but regulation and public education to be vigilant are still our best defence.”

VoM News Desk

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