So far this year, reported losses from cryptocurrency scams have increased by 30% compared with last year
In the first nine months of this year the UK has seen a significant rise in crypto-related fraud, according to a report from Bloomberg. More than £146 million ($201 million) was lost to cryptocurrency scams between January and October, with many victims being young people. London police revealed they received a total of 7,118 reports of crypto-related fraud.
Detective Inspector Craig Mullish noted that the rise in crypto scams was not entirely unexpected.
“Reports of crypto-related scams have increased considerably in recent years. The more time we spend online, the more opportunities criminals have to target unsuspecting victims and try to defraud them.”
Local law enforcement warns against rushing into seemingly attractive investment opportunities promoted by celebrity endorsements, as many scammers fabricate fake celebrity testimonials to trick unwary people. The warning is backed by statistics showing that almost four out of five complaints about false celebrity endorsements involve cryptocurrencies.
More than 50% of crypto scam victims are aged 18–45. This is not particularly surprising, given that younger people make up the largest share of those interested in cryptocurrencies.
A July survey by Opinium found that half of Britons aged 18–29 had considered investing in cryptocurrency as their first investment. The survey also showed that young people in the UK were particularly interested in Bitcoin and Dogecoin.
Around the same time, NatWest urged its customers to be vigilant about scams in the crypto industry. David Lindberg, a director at the bank, specifically warned about fake crypto platforms set up to steal from unsuspecting investors. Lindberg added that the UK crypto market was especially vulnerable to fraudsters.
“Scamming is an industry. They are intelligent and evolve quickly, and it is heartbreaking to see how they are able to ruin lives,” he said at the time.