Cryptocurrency fraud has risen sharply in the first nine months of the year, according to British police. According to the data, the loss caused by fraud is $200 million.
According to an email from the London police, 7,118 cryptocurrency alerts have been sent to the UK this year on charges of fraud and cybercrime. According to current data, the amount lost in 2021 is already 30% higher than in the whole of 2020. More than half of the victims are between 18 and 45 years old.
According to Craig Mullish, Chief Inspector-in-Chief of the Interim Detective, information about cryptocurrency fraud has increased significantly in the last few years. Proximity to technology and excessive online space makes it easier for criminals to approach victims with fraudulent investment opportunities.
Police say scammers often use the names of celebrities to lure and deceive people. 79% of the complaints concerning counterfeit approval were directly related to cryptocurrency.
With the expansion of the cryptocurrency market, the threats have also increased. The probability of investor cheating is now higher than ever. For government executives, cryptocurrency fraud has become one of the most common and problematic topics.
Excessive use of technology and the pandemic that has made people even more dependent on digital services have made fraud prevalent this year.
Cryptocurrency fraud can take many forms, including Financial Crimes – Crypto transactions can be used as a new tool to avoid money laundering and tax evasion. ICO – The first offer of a specific cryptocurrency that could be a means of criminal predation. Many ICOs are entirely fictional. According to non-existent team members and with technical background copied from other legitimate cryptocurrencies. Landfill Schemes – Crypto can provide a new variation of the classic landfill scheme where stockholders raise prices before selling their property. In the crypto world, it is a common occurrence when false claims can increase demand. This, in turn, allows cryptocurrency owners to make massive counterfeit profits.
Market Manipulation – Scammers can try to manipulate markets where cryptocurrencies are traded. Traditional theft – criminals can hack investors’ crypto wallets and steal their property and create counterfeit wallets.
Broker Fraud – The SEC has investigated cryptocurrency investment exchanges that may require stock exchange registration.
Earlier in the week, the Deputy Governor of the Bank of England issued a warning about the massive collapse in cryptocurrency prices; According to Jon, with the growing cryptocurrency, the financial system can create big problems if it is not regulated immediately. It is noteworthy that in 2021 the crypto market grew by 200% and exceeded $2.3 trillion.