- Data released by the UK police showed that about $200 million was lost in crypto-related frauds in 2021 Q1 to Q3.
- Most of the victims were the younger generation, between the ages 18 and 45.
A police report revealed that crypto investors in the UK have lost about $200 million to fraud between January and September 2021. According to the UK police, there was a surge in the number of fraud cases involving crypto investors in the first three quarters of the year.
The cryptocurrency industry has been seeing exponential growth and expansion since the beginning of the year. With a lot of crypto assets reaching new all-time highs, we have also been seeing a lot of project development within the industry. More significantly, there has been an uptick in digital assets adoption among both institutional and retail investors. The increasing interest in crypto among investors has also attracted more criminals, resulting in a high rate of fraud in the UK and other parts of the world.
UK police report: fraud cases involving crypto accounts reach 7,100 so far in 2021
In the report, the UK police stated that the number of crypto-related frauds had surpassed 7,100 in 2021. The current number of cases leading to fraud among crypto investors in the UK signifies a 30 percent rise compared to the percentage recorded last year. One of the ways the fraudsters use in deceiving victims is through fake celebrity endorsements. These thieves deceive investors by claiming false celebrity endorsements to convince them to part with their crypto funds.
Mostly, the scammers attract the victims with extremely high returns, targeting them on top social media platforms. Around 79 percent of reports on crypto frauds received by Action Fraud accounts for attempting to lure users to crypto investment for high returns. However, the victims never get the promised returns once they part with their capital.
Despite that the younger generation is considered to be more tech-savvy, this group of people happens to be the most victims of rampant crypto fraud. Reports showed that most of the victims are below 45 years of age. Specifically, 52 percent of the victims of crypto fraud were between the ages of 18 and 45.
The temporary detective chief inspector Craig Mullish from the City of London Police talked about the alarming rise of crypto fraud over the years. Mullish added that the growth is not surprising, considering that everyone now spends more time online. He stated that spending more time online means criminals have more opportunities to connect “unsuspecting victims with fraudulent investment opportunities.
US, UK, and more countries join forces to fight cyber crimes
Meanwhile, US allies have joined forces with about 30 countries, including the UK, to counter cybercrime as well as other crypto crimes. The US Ministry of Foreign Affairs disclosed the matter after a 2-day Counter-Ransomware Initiative. The Ministry said that countris at the virtual meeting have agreed to enhance law enforcement collaboration on topics like money laundering involving cryptocurrency. The group said in a joint statement;
Governments recognize the need for urgent action, common priorities and complementary efforts to reduce the risk of ransomware.