The Financial Conduct Authority has received 16,400 enquiries about possible scams between April and September 2021.
This is a one third increase on enquiries over the same period one year before.
Boiler rooms, cryptocurrency scams, FCA-impersonation, and recovery rooms are the four most reported types of scams.
Hargreaves Lansdown senior investment and markets analyst Susannah Streeter says: “The watchdog is swimming against an increasingly treacherous tide of scams and suspect investments.
“Given the volatile rise of coins and tokens over the pandemic, it seems many more fraudulent operations have been launched, to take advantage of consumers’ fear of missing out on the crypto rollercoaster.
“The number of boiler room scams is also marching upwards, with fraudsters posing as bogus investment firms, who cold call people and pressure them into buying shares which are often worthless or even non-existent.
“Recovery scams are also multiplying which add financial insult to injury to investors who have already lost money to scammers by offering to find stolen cash for an advance fee.”
The FCA also saw an increase in reports about possible cryptocurrency scams. This applies both to its supervision hub, with a 14% increase compared to the previous six months, and its ScamSmart with a 49% surge.
As a result, the regulator opened 300 cases relating to potential unregistered cypto-asset businesses in the same period.
It says they are “likely to be involved in scams”. Therefore, the FCA has added 172 firms to its unregistered cryptoasset businesses list.
The pension specialist team at the FCA also opened 106 cases between April and September 2021.
Fifty-one of them were opened on the basis of data analysis relating to suitability of pension transfer advice and potential scams.
The remaining 55 cases were opened based on information received by the regulator. That can include among other consumers or other areas of the FCA.
Moreover, the regulator stopped 32 firms from entering the consumer investment market in the same period. This represents a quarter of the applications.
In nine of the cases, the FCA suspected phoenixing or lifeboating by advice firms.
Interactive Investor senior personal finance analyst Myron Jobson says: “Any win over fraud should be celebrated, but the harsh reality is it remains difficult to stay a step ahead of ever evolving financial scams.
“The challenge is uprooting shady businesses and outright scam ventures before they have the opportunity to do harm to consumers.
“The fact remains that it will take a colossal effort from the industry as a collective to plug the flood of financial scams.
“Financial scams have become a begrudgingly accepted part of everyday life, but consumers must remain alert to potential threats that come in all different shapes and forms.
“As well as a pounds and pence cost, falling victim to a financial scam has a broader psychological and emotional impact that can linger and cause distress well after the scam is over.”
Last year Interactive Investor’s Great British Retirement Survey found that only 34% of those who fell victim to a scam had received their money back.
In addition, 56% had not had their money returned, and 11% were still waiting.
AJ Bell head of investment analysis Laith Khalaf said: “Investors in today’s world do need to be watchful, and not let down their guard because they think they’re too smart to be conned.
“Scammers are adept at targeting consumers with appealing messages at a time when their defences might be lowered.
“As ever it makes sense to invest with robust, trusted businesses who are registered with the FCA, and if you are approached out of the blue with an offer that sounds too good to be true, alarm bells should be ringing.”
Recent research by Kalgera showed that British adults lose on average £1,002 through financial fraud.
