Protecting trust amid rising investment scams

Investment scams are evolving fast, targeting even cautious investors. Learn how to stay vigilant and protect your hard-earned money from digital fraud.

December 19, 2025

3 mins

Fighting financial crimeAbout Standard Chartered

In a world shaped by rapid digital transformation, trust remains the cornerstone of financial relationships. Yet, it is precisely this trust that today’s scammers exploit. Our expertise in technology, operations and client ecosystems means we understand that the rapid evolution of digital systems has also enabled increasingly-sophisticated fraud tactics – particularly in investment scams.

As fraud evolves beyond crude emails and cold calls, we are now confronted with highly organised and sophisticated networks using technology and psychology to deceive even the most cautious investors.

A growing threat: deception in finance

Fraud is not new, but its methods have advanced dramatically. From Charles Ponzi in the 1920s to Bernie Madoff’s multi-billion-dollar deception in the 2000s, history shows how financial ambition and misplaced trust can be manipulated. Today, those same patterns are resurfacing – only faster, smarter, and on a global scale.

In 2024 alone, investment scams were the costliest form of internet crime in the United States, accounting for estimated losses of USD6.6 billion, according to the FBI’s Internet Crime Complaint Center. The trend is equally concerning across Europe and parts of Asia, where authorities continue to report a surge in high-yield investment and crypto-related scams.

This global pattern underscores a simple truth: fraud evolves wherever opportunity meets trust. It also highlights the importance of individuals everywhere staying informed about the changing tactics of fraudsters and recognising the signs of manipulation – particularly around investment offers that seem too good to be true.

Modus operandi

Scammers often begin with a simple invitation – an exclusive “opportunity” in a group chat or messaging platform, branded to resemble a trusted financial institution. Victims are drawn in by endorsements from accomplices posing as satisfied clients, amplifying the illusion of success.

Some scammers even create a branded mobile application. These apps mirror the look and feel of authentic financial tools, even providing simulated market data to build trust. Early profits are shown to build credibility – until the inevitable collapse, when accounts are frozen, funds vanish, and advisors disappear without a trace.

Why it works: the psychology of trust

What makes these scams effective is not technology alone, but also their exploitation of human instincts: trust in community, belief in authority, and hope for a better financial future. Scammers prey on optimism, using speed and urgency to bypass rational caution. Even seasoned investors can be swayed when instincts are manipulated, underscoring the importance of awareness and education.

We believe it is our responsibility not only to protect clients, but also to raise awareness of how these psychological levers work.

Safeguarding against deception

Protecting the financial ecosystem depends on awareness and informed action. Below are key measures to stay vigilant:

• Verify the source: Genuine banks will never use unofficial groups or unsolicited channels to share investment advice or promote products.
• Be skeptical of overnight success: Real investments involve time, risk, and transparency.
• Treat group chats with caution: Accomplices posing as peers can create a false sense of credibility.
• Report and educate: Each report helps disrupt fraud networks and protects others.
• Seek trusted advice: Before acting, consult a certified advisor or someone with experience.

Scammers rely on you letting your guard down, just for a moment. Pause and think. It can protect you and your money

David Howes

Group Head, CFCR

Stay alert, not fearful

Investment scams are becoming more sophisticated, and so too must our defences. Awareness, vigilance, and collective action remain the best safeguards.

If you come across anything suspicious, report it to phishing@sc.com. For more information on reporting and fraud prevention, visit the cyber security and fraud safety page and use the ‘Report Suspected Fraud’ button.