Data shows UK crypto crime rises 32%
- Reported losses from crypto scams totaled £226 million, up 32% in one year.
- The number of crypto scams increased by 16% over the same period.
Reported losses from crypto-related crime in the UK rose 32% in just one year, police data shows. Crypto crime is on the rise, according to Action Fraud UK data obtained through a freedom of information request.
The UK Police Fraud Prevention Unit collects data on reported incidents on an ongoing basis. The data shows that between October 2021 and September 2022, victims reported £226 million ($273 million) in losses from crypto-related crime.
That’s an increase of 32% over the same period last year. At the same time, the number of reported crypto-related incidents increased by 16%. Between October 2021 and September 2022, victims reported a total of 10,030 crypto fraud cases.
Crypto scams on the rise
The numbers paint a bleak picture of the prevalence of crypto-related crime. Worse still, these numbers only relate to reported fraud cases. The true number is likely much higher as many people may not report minor losses or be aware that they have been victims of crypto scams.
Some of the most prevalent types of scams in the crypto space are pump and dump schemes, rug pulls, yield farming schemes with unrealistic returns, and wallet hacks. Experts warn that crypto investors should be extra wary of investment plans that sound too good to be true.
However, the rise in crypto scams is part of a broader trend in the UK that goes beyond crypto. In June, British banks warned that the country was facing a “fraud epidemic” amid a rise in financial fraud. A category known as authorized push payment scams rose 40% to £580 million ($700). Losses from all types of fraud in the UK increased by 8% in 2021 to reach £1.3bn ($1.57bn).
On the flip side
- The increase in crypto scams can also be taken as a sign that crypto is becoming more mainstream. As more people start using crypto, the number of successful scams is likely to increase as well.
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:
The 12 Best Crypto Hardware Wallets to Explore in 2022
Learn more about self-custody and the best wallets out there:
Better Safe Than Sorry: The 8 Best (ETH) Self-Custody Wallets
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