1. Home
  2. >>
  3. crypto
  4. >>
  5. UK filed over 34,000 crypto scam reports in past 6 years

UK filed over 34,000 crypto scam reports in past 6 years

UK filed over 34,000 crypto scam reports in past 6 years

Along with the growing popularity of cryptocurrency trading around the world, there has been a significant increase in the number of cryptocurrency scams or fraud. In the UK alone, there have been 34,305 reports of criminal behavior involving cryptocurrencies since 2016.

Cybercrime is now a widespread problem globally. The number of cryptocurrency-related crimes peaked in 2021. According to analysis by Chainalysis, a blockchain data company, criminals laundered $8.6 billion worth of cryptocurrency in 2021, a 30% increase compared to past year.

Related Reading | Indian regulator is ditching its only crypto exchange: Bane or Boon?

Since 2017, hackers have laundered nearly $33 billion worth of cryptocurrency, with most of that amount eventually migrating to centralized exchanges. By contrast, the United Nations Office on Drugs and Crime estimates that up to 5% of global GDP, or between $800 billion and $2 trillion, of fiat currency is laundered each year.

However, when it comes to money, scams always follow. As a result, investors and traders will need to pay much more attention to their transactions, as authorities around the world receive numerous reports of fraud and scams involving cryptocurrencies every day.

The UK is now ranked number 5 due to massive hacking and fraud scams taking place within its borders. However, North Korea tops the list of crypto crimes in the world.

Bitcoin is currently trading at $20,923 on the daily chart | Source: Tradingview.com BTC/USDT chart

The UK is a global hub for cryptocurrency fraud due to its lax trading regulations, which make it easy for scammers to hide the source of the money and its intended destination. Therefore, the country has a long history of cryptocurrency fraud.

2016 UK Crypto Scam Reports

In 2020, there were 8,801 documented crypto crimes, a staggering 1,150% increase from the 704 reported in 2016. After that, in 2021, another increase was seen. That year, 9,458 cases of cryptocurrency-related crime were recorded. Again, this was a 1,243% increase over the data reported for 2016.

Additionally, victims of cryptocurrency-related crime in the UK lost a staggering amount of money in just one year in 2021, amounting to more than £204 million.

Related Reading | Bitcoin shopping app now works at 175,000 ATMs in the US

In the first month of 2021, there were 671 reports and claimed losses amounted to £13m. April saw the highest number of reports with 906. November saw the highest financial losses of £23 million from 793 cases. The loss for the full calendar year was £204.5m.

Also, younger generations tend to fall victim to crypto scams more often than older people. It turns out that 12.3% of all victims in 2021 were people between the ages of 18 and 25! Furthermore, men are more important targets for crypto crimes than women.

Featured image from Flickr, chart from Tradingview.com

Share this: