With the advent of the latest technology, it was no surprise that crypto-related frauds were on the rise. The latest report by the City of London Police revealed that UK citizens have lost more than £146 million ($200 million) in crypto-related frauds this year.
The amount recorded was already 30% higher than the annual damage amount of 2020. The majority of the victims were aged between 18 to 35.
Action Fraud, which investigates fraud and cybercrime, has received over 7118 reports in crypto frauds since the beginning of the year. After taking average damage of £20,500 ($28,000) per case, the amount exceeded over £146 million ($200 million).
Temporary Detective Chief Inspector Craig Mullish cited the increased usage of the internet as the main reason behind such exploits. He said:
“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.”
The police found fake celebrity endorsements in approximately 79% of the complaints. Fake celebrity endorsements are a method where advertisements with pictures of well-known celebrities and entertainers are used to deceive net surfers.