Online adverts use the names and pictures of celebrities such as Martin Lewis in an attempt to scam people out of thousands of pounds.
Analysis of Action fraud data by Money Saving Expert has revealed that celebrities are being used to falsely endorse cryptocurrency, investment and retirement planning schemes, often touted as a “get rich quick” way.
The top 20 celebrities used in fraudulent advertising include King and Elon Musk, but the most famous is Martin Lewis, with Money Saving Expert estimating that £20 million has been lost to scammers using Lewis' name and photo in the past two years.
According to a personal finance website, the largest personal loss from a fraud involving Lewis amounted to £500,000.
Charlene Young, pensions and savings specialist at AJ Bell, said: “Mr Lewis has repeatedly admitted he does not promote investment schemes and in 2018 he even took legal action against the firm for defamation after more than 1,000 adverts on Facebook used Mr Lewis' name and image to falsely promote a range of investment and cryptocurrency schemes.”
“Facebook has settled the case, agreeing to donate £3 million to Citizens Advice's anti-scam project and set up reporting tools.
“Unfortunately, even Action Flood's official statistics likely underestimate the true scale of the problem. As we all know, many people feel embarrassed or ashamed to have been scammed so don't report it, while others believe there is no way they can get their money back.”
Commenting on the data on his website, Lewis said being named top of the list of celebrities most used by scammers was “the worst compliment I've ever received”.
He urged people to check the top 20 list on the Money Saving Expert website when seeing adverts featuring celebrities, and to “double and triple check” that the ad is legitimate from other trusted sources if someone on the list appears in the advert.
“After six years of campaigning, successfully suing Facebook and lobbying to have deceptive advertising covered by online safety legislation, I am deeply outraged that the online advertising market remains a lawless place.
“The new government has promised to give tech companies clear obligations and clear financial incentives to work with banks to prevent fraud, identify fraudulent transactions and help victims. We will be watching closely to see if that happens.”
alina.khan@ft.com
