Reported losses from crypto-related crime in the UK rose 32% in just a year, police data shows. According to data from Action Fraud UK, obtained by a freedom of information request, crypto crime is on the rise.
The fraud-prevention arm of the UK police collects data on reported incidents on an ongoing basis. The data shows that between October 2021 to September 2022, victims reported £226 million ($273 million) in losses from crypto-related crime.
This is a 32% increase from the same period a year earlier. At the same time, the number of reported crypto-related incidents rose by 16%. Between October 2021 to September 2022, victims reported a total of 10,030 instances of crypto fraud.
The numbers paint a bleak picture of the prevalence of crypto-related crime. What is worse, these figures only account for reported instances of fraud. The true number is likely much higher, as many people may not report smaller losses or be aware that they were the victims of crypto fraud.
Some of the most prevalent types of scams in the crypto space include pump-and-dump schemes, rug pulls, yield farming schemes with unrealistic returns, and wallet hacks. Experts warn that crypto investors should be particularly wary of investment schemes that sound too good to be true.
However, the jump in crypto scams is a part of a wider trend in the UK, one which goes beyond crypto. In June, UK banks warned that the country is facing an “epidemic of fraud” amid an increase in financial scams. One category, known as authorized push payment fraud, rose 40% to £580 million ($700). Losses from all types of fraud in the UK were up 8% in 2021, reaching £1.3 billion ($1.57 billion).
Security is a crucial element for the mainstream adoption of crypto and blockchain technology.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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