The UK has submitted over 34,000 crypto fraud reports in the last 6 years

Along with the increase in popularity of cryptocurrency trading worldwide, there has been a significant increase in the number of cryptocurrencies or frauds. In the UK alone, there have been 34,305 allegations of criminal behavior involving cryptocurrency since 2016.

Cybercrime is now a widespread problem on a global scale. The amount of crime involving cryptocurrencies peaked in 2021. According to a Chainalysis analysis, a blockchain data company, laundered criminals $ 8.6 billion in cryptocurrencies in 2021, an increase of 30% from the previous year.

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Since 2017, hackers have laundered nearly $ 33 billion in cryptocurrencies, and the majority of that amount has eventually migrated to centralized exchanges. In contrast, the UN Office on Drugs and Crime estimates that up to 5% of the world’s GDP – or between $ 800 billion and $ 2 trillion – of fiat cash is laundered annually.

Nevertheless, when it comes to money, fraud always follows. As a result, investors and traders will have to be much more aware of their trading, as governments around the world receive many reports of scams and scams involving cryptocurrencies every day.

The UK is now ranked number 5 due to the massive hacking and fraud carried out within the country’s borders. However, North Korea is at the top of the list for cryptocurrencies worldwide.

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

Reports on crypto fraud in the UK from 2016

In 2020, there were 8,801 documented crypto crimes, a staggering increase of 1,150% from the only 704 reported in 2016. After that, in 2021, a new increase was observed. In that year, 9,458 cases of cryptocurrency crime were registered. Again, there was an increase of 1,243% compared to the reported data for 2016.

In addition, victims of cryptocurrency crime in the UK lost a staggering amount of money in just one year in 2021 – more than 204 million pounds.

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In the first month of 2021, there were 671 reports, and the alleged losses amounted to 13 million pounds. April saw the highest number of reports at 906. November witnessed the biggest financial losses of £ 23 million across 793 cases. The loss for the full calendar year was £ 204.5 million.

Furthermore, the younger generations tend to fall victim to crypto fraud more than older people do. As it turns out, 12.3% of all victims in 2021 were people aged 18-25! In addition, men are heavier targets for cryptocurrency than women.

                      Featured image from Flickr, chart from Tradingview.com