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According to recent research, the number of frauds related to crypto in the United Kingdom increased considerably in the first nine months of 2021 when compared to the same period last year.
Local police cautioned that fraudulent actors frequently use a false celebrity endorsement to entice individuals.
In the United Kingdom, Youngsters Are More Vulnerable to Crypto Frauds
According to a recent Bloomberg study, there were 7,118 reports of digital asset frauds in the United Kingdom between January to October this year.
Victims paid over $20 million during that period, which is 30% higher than the total amount paid out in 2020.
The police noted that more than half of those tricked were between the ages of 18 and 45. Investing in Bitcoin and altcoins is extremely popular among the country's young people, with over half of those under 30 choosing the crypto market as their first investment choice.
As a result, it's not surprising that they've become a target for con artists.
The City of London Police also stated that the most prevalent strategy used by fraudsters is to mislead individuals into fake celebrity endorsements, with 79% of all instances falling into this category.
Craig Mullish, a temporary Detective Chief Inspector, commented:
“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.”
In terms of such methods, it is worth remembering that Steve Wozniak filed a case against YouTube last year.
According to him, the site did not take the required steps to prevent bogus Bitcoin giveaways including his likeness.
However, he lost the lawsuit a year later because his reasons were insufficient to win in court.
The UK Is A Haven For Cryptocurrency Scammers
When it comes to crypto-related fraud, the United Kingdom is considered a "paradise" for local crooks. At least, that is what David Lindberg, NatWest's Chief Executive of Retail Banking, recently stated.
He stated that he has “never seen a market worse” for frauds than the UK.
To resolve the problem, the British government, police, banks, social media companies should 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.”
The top banker also cautioned that some unscrupulous actors set up websites where individuals may invest in Bitcoin, Ethereum, and other cryptocurrencies.
However, the websites are phony in fact, and the money ends up in the wallets of the fraudsters.