- Reported losses from crypto scams were £226 million, up 32% in a year.
- The number of crypto scams rose by 16% in the same period.
Reported losses from crypto-related crime in the UK rose 32% in just a year, police data shows. According to data from Action Fraud UK, obtained by a freedom of information request, crypto crime is on the rise.
The fraud-prevention arm of the UK police collects data on reported incidents on an ongoing basis. The data shows that between October 2021 to September 2022, victims reported £226 million ($273 million) in losses from crypto-related crime.
This is a 32% increase from the same period a year earlier. At the same time, the number of reported crypto-related incidents rose by 16%. Between October 2021 to September 2022, victims reported a total of 10,030 instances of crypto fraud.
Crypto Scams on the Rise
The numbers paint a bleak picture of the prevalence of crypto-related crime. What is worse, these figures only account for reported instances of fraud. The true number is likely much higher, as many people may not report smaller losses or be aware that they were the victims of crypto fraud.
Some of the most prevalent types of scams in the crypto space include pump-and-dump schemes, rug pulls, yield farming schemes with unrealistic returns, and wallet hacks. Experts warn that crypto investors should be particularly wary of investment schemes that sound too good to be true.
However, the jump in crypto scams is a part of a wider trend in the UK, one which goes beyond crypto. In June, UK banks warned that the country is facing an “epidemic of fraud” amid an increase in financial scams. One category, known as authorized push payment fraud, rose 40% to £580 million ($700). Losses from all types of fraud in the UK were up 8% in 2021, reaching £1.3 billion ($1.57 billion).
On the Flipside
- The increase in crypto scams can also be seen as a sign that crypto is becoming more mainstream. If more people start using crypto, the number of successful scams is also likely to increase.
Why You Should Care
Security is a crucial element for the mainstream adoption of crypto and blockchain technology.
Protect your crypto assets with these hardware wallets:
12 Best Crypto Hardware Wallets to Explore in 2022
Learn about self-custody and the best wallets out there:
Better Safe Than Sorry: 8 Best Ethereum (ETH) Self-Custody Wallets