Online adverts are using celebrity names and pictures such as Martin Lewis to scam people out of thousands of pounds.
Analysis of Action Fraud data by Money Saving Expert revealed celebrities are being used to falsely endorse cryptocurrency, investing and retirement planning schemes, often marketing it as a way to “get rich quick”.
The top 20 celebrities being used in scam adverts include the King, Elon Musk but most notably Martin Lewis - with Money Saving Expert estimating that £20mn has been lost to scammers using his name or picture in the past two years.
According to the personal finance website, the biggest individual loss attributed to a scam featuring Lewis amounted to £500,000.
Charlene Young, pensions and savings expert at AJ Bell, said: “Lewis has repeatedly confirmed he doesn’t advertise investment schemes, and even took defamation legal action against Facebook back in 2018 after more than 1,000 adverts on the social networking site used his name or photo to falsely endorse various investment and cryptocurrency schemes.
"Facebook settled and agreed to donate £3mn to Citizens Advice anti-scams projects as well as set up a reporting tool.
“Sadly, even Action Fraud official figures are likely to grossly underestimate the true scale of the problem. As we know, people often feel embarrassed or ashamed of being defrauded and therefore don’t report it, while others assume that nothing can be done to get their money back.”
Commenting on the data on his website, Lewis said being at the top of the list of celebrities most used by scammers was the “worst compliment he’d ever had”.
He urged people to check the top 20 list on the Money Saving Expert website when seeing adverts featuring celebrities, and if someone from the list is part of the advert to “double and triple check” it is legitimate from other trusted sources.
“I find it deeply frustrating that after six years of campaigning, having both successfully sued Facebook, and lobbied to get scam adverts covered by the Online Safety Act, the online advertising market is still a wild west.
“The new government has promised to ensure that tech companies have a clear obligation, and a clear financial incentive, to work with banks to prevent scams, identify fraudulent transactions and support victims. We'll be watching closely to see if it delivers."
alina.khan@ft.com
