Investment fraud up by 76% in 2024, Gen Z targeted

Investment fraud surged by 76% in 2024. The latest trends showcase a growing impact on Gen-Z, as the number of victims in this age group rose by 52%; Giedrė Blazgienė outlines key strategies to protect your finances amid evolving scam tactics

 
Investment fraud is one of the fastest-growing global financial threats. INTERPOL reported that fake investment schemes rose by 76% in 2024. According to the Bank of Ireland, the most trending scams were investment, advance payment, romance fraud, and business email compromise. Currently, it affects individuals from all age groups, including the younger generation. Giedrė Blazgienė, CEO of Mano Bank, a specialized bank based in Lithuania, offers tips on how to recognize fraud and protect yourself from investment fraud.

“Fraudsters have become more sophisticated. Using AI to create more convincing investment schemes and utilizing cryptocurrencies to obscure transactions enabled them to exploit the confidence of young, tech-forward investors and target older generations. It is important to recognize the tactics that they use and follow safe investment practices which will help protect your finances and sensitive information,” said Giedrė Blazgienė.

Younger investors are becoming prime targets for fraudsters. Victims of financial fraud in the 18–30 age group rose by 52%. This demographic is increasingly active in investing as they focus on building their financial futures.

However, only 6% of Gen-Z representatives have solid financial knowledge, which opens a gap for fraudsters to exploit. Those issues make people more vulnerable to schemes promising high returns, such as investment fraud.

“Investment fraud remains one of the most common types of financial deception, with scammers often presenting opportunities that seem too good to be true. They typically lure victims with promises of high returns and minimal risk, starting with small investments, often as little as €100. These fraudulent schemes often use fake platforms to show fictitious returns, persuading victims to invest larger sums. Red flags include unrealistic promises, pressure to act quickly without time for due diligence, and a lack of transparency regarding investment details,” elaborated Blazgienė.
 

3 key characteristics of investment fraud

 
Unrealistic promises. Schemes that guarantee unusually high returns with no risk are almost always fraudulent. Legitimate investments always carry some level of uncertainty, as market conditions can fluctuate. High returns always involve taking high risks. Scammers shift victims’ focus from risk by fabricating success stories or showing fake returns.

According to Blazgienė, there is one rule that should be followed–if an opportunity seems “too good to be true,” it probably is a scam.

Pressure to act quickly. Creating urgency is a classic tactic used by fraudsters. They might tell you that the offer is available for a limited time or claim that you’ll miss out on lucrative returns if you don’t act immediately.

“By applying pressure, scammers want to stop people so that they do not research the opportunity thoroughly or consult a financial advisor. Legitimate investments provide sufficient time to evaluate risks and benefits,” added Blazgienė.

Lack of transparency. A lack of accessible or verifiable information about the project, company, or individuals behind the scheme is another hallmark of investment fraud.

“Scammers will likely use vague language, refuse to provide clear documentation, or claim that details are proprietary or confidential. Don’t fall for that–all claims must be confirmed with trusted sources, and the company has to be registered with relevant authorities,” elaborated Blazgienė. “In Europe, firms offering investment advice must hold licenses such as the MiFID (Markets in Financial Instruments Directive) license, regulated by national financial authorities like the FCA in the UK or BaFin in Germany. In the US, investment advisers must be registered with the SEC or state securities regulators, holding credentials such as the Series 65 license.”
 

Tips to protect oneself from investment fraud

 
“Investment fraud thrives on manipulation, often preying on overconfidence and the assumption that such scams could never happen to me. Confidence is important, but overconfidence is a vulnerability that can be easily exploited. We must remain cautious and critical when it comes to financial decisions and there are a few tips you can follow to stay safe,” noted Blazgienė.

Verify information sources. Always cross-check the legitimacy of any investment opportunity and the platform that offers it. Read independent reviews, regulatory registrations, and official websites to confirm that the platform is authentic and legitimate. Be cautious of platforms that lack a verifiable history or offer vague information about their operations.

Stick to official channels. Communicate only through verified channels, such as official company emails, websites, or apps. Do not click on unsolicited links sent via email, text, or social media, because they can lead to phishing sites designed to steal personal information. Check if web addresses are spelled correctly; because misspelled domain names that mimic websites of legitimate companies will likely be run by cyber criminals.

Seek professional guidance. Consulting with licensed financial advisors can help evaluate the legitimacy of an investment. Financial experts are equipped to analyze the risks and validate whether an opportunity aligns with industry standards. When you consult trusted advice, you also reduce the risk of falling victim to investment schemes.
 

What to do if you suspect a fraud

 
“If you suspect investment fraud, contact your bank or financial institution as soon as you notice suspicious activity. Banks have dedicated teams that can assist by freezing accounts, investigating fraudulent transactions, and working to recover funds. Report the incident to the relevant financial regulatory authority or consumer protection agency in your region. In many countries, regulators provide online forms or hotlines to make reporting scams straightforward. Include all relevant details, such as emails, documents, or transaction records, to support the investigation,” concluded Blazgienė.