Reports have shown since the beginning of this year, the UK has suffered a loss of around $200 million due to crypto-related fraud. This is a major increase compared to last year. Reports from authorities further state that most of these losses are attributed to investors who lie to their clients about fake celebrity endorsements.
Young Population are mostly Victims
The report by Bloomberg further showed that there was around 7118 fraud schemes related to cryptocurrencies in the UK since the beginning of the year. The money lost during the same period is also 30% higher compared to last year.
Authorities in the country have also stated that half of the victims are people aged between 18 and 45 years. Investing in cryptocurrencies has become highly popular to people aged below 30 years, with many youngsters choosing cryptocurrencies as their first investment option. However, this group has now become a target for fraudsters.
A report from the City of London Police stated that the most common technique being used by these criminals is to lure people to invest in fake crypto initiatives. 79% of all the recorded crypto fraud cases have been attributed to fake celebrity endorsements.
Commenting on the issue, Chief Inspector Craig Mullish stated, “Reports of cryptocurrency fraud have increased significantly over the past few years. Being online more means criminals have a greater opportunity to approach unsuspecting victims with fraudulent investment opportunities.”
Fake crypto giveaways have been a common predicament in the crypto space as last year, Steve Wozniak filed a lawsuit against YouTube for failing to take measures to prevent fake crypto giveaways using his name. However, Wozniak’s arguments were not strong, and he lost the case.
UK becomes Hub for Crypto Fraudsters
The UK has now become a major hub for crypto-related fraud. Recent remarks by David Lindberg, NatWest’s retail Banking executive, the UK has become a “paradise” for these fraud cases.
He also noted that the only way that the rise in crypto-related fraud could be tamed is if the police, government, financial institutions and social media platforms work together. “Fraud and scams are an industry. They’re intelligent and they move fast, and it’s heartbreaking to see how they try to destroy lives.”
Lindberg also notified the public of some fraudsters who create fake websites and lure people to use these sites to invest in cryptocurrencies. However, instead of the money going to buy these digital assets, it ends up in the investors’ pockets.
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