- Cryptocurrency scams have constituted 66% of all investment fraud cases in the UK over the past year
- Victims have collectively lost over £649 million to investment fraud, with a significant portion linked to crypto-related schemes
- Social media platforms have been frequently exploited by fraudsters to promote fraudulent investment opportunities
Data from the City of London Police and Action Fraud has revealed a concerning rise in cryptocurrency-related investment scams. Crypto scams now represent two-thirds of all reported investment fraud cases in the UK, a surge that has led to substantial financial losses exceeding £649 million ($833 million). Social media platforms have played a pivotal role in facilitating these fraudulent activities, with celebrity scams on the rise.
More People Falling for Scams
Action Fraud is the UK’s national reporting center for fraud and cybercrime. In 2024, it received 25,843 reports of investment fraud, 66% of which involved cryptocurrencies, a 16% rise compared to 2023. During this time, fraudsters have increasingly leveraged social media platforms to promote deceptive investment opportunities; WhatsApp was implicated in 40% of these reports, followed by Facebook at 18% and Instagram at 14%. This trend underscores the need for heightened vigilance when approached with unsolicited investment offers online.
Individuals aged 35-44 were most frequently targeted by investment fraudsters, while those aged 55-64 suffered the greatest financial losses. Scammers often impersonated well-known public figures to gain credibility, with financial expert Martin Lewis being the most commonly used identity, accounting for 44% of such cases. Elon Musk and Jeremy Clarkson were also frequently impersonated.
Scammers Getting Better
Detective Superintendent Oliver Little of the City of London Police emphasized to Decrypt the sophistication of these fraudsters, noting, “Investment fraudsters will often be incredibly skilled in what they do and will spin a convincing and alluring pitch of how much money they can make you, in often a short amount of time.” He advised potential investors to conduct independent research, verify the registration of investment firms with the Financial Conduct Authority (FCA), and be cautious of unsolicited financial advice, especially from social media contacts.
As cryptocurrency scams become more prevalent, it is imperative for individuals to remain vigilant and skeptical of investment opportunities that promise high returns with minimal risk.
