Ombudsman seeing thousands of complaints related to job and investment scams

Dr Rasha Kassem, senior academic and leader of the Fraud Research Group at Aston University, said: “The latest figures from the Financial Ombudsman Service underline a stark reality: online fraud is no longer a fringe issue — it is a mainstream financial risk.

“More than 31,000 fraud complaints in a single year, including around 20,000 authorised payment cases, point to structural vulnerabilities in the digital economy rather than isolated criminal incidents.

“Over half of authorised payment complaints relate to online investment fraud, often linked to cryptocurrency.

“These schemes are sophisticated and psychologically engineered.

“They rely on persuasive advertising, professional-looking platforms and staged “returns” to build credibility before encouraging larger investments.

“Requests for additional “fees” or “taxes” to release funds are a defining feature — by that stage, the money has already been lost.

“The growth in job fraud is equally concerning and reflects wider economic pressures.

“Criminals are exploiting demand for flexible, remote income by promoting roles that promise high pay for minimal effort.

“Any request for upfront payment — particularly in cryptocurrency — should be treated as an immediate warning sign.

“Legitimate employers do not charge candidates to access wages.

“Because many cases involve authorised payments, victims technically approve the transactions.

“That complicates reimbursement and makes prevention essential.

“Banks’ real-time fraud checks are critical, but consumers must also pause and independently verify any opportunity.

“Consumers should never transfer money upfront without checking the firm on the Financial Conduct Authority register, confirming genuine contact details, and verifying that withdrawals are possible before committing larger sums.

“Being coached on what to tell a bank — or asked to hide the purpose of a payment — is a clear indicator of fraud.

“Banks also have a role to play in protecting consumers.

“Reducing losses will require clearer behavioural guidance for consumers, enhanced monitoring of high-risk payments, cooling-off periods for suspicious transfers, faster fund-freezing processes, and greater accountability across digital platforms where these schemes originate.

“Passive warnings alone are not enough.”