Cryptocurrency fraud continues to be a growing concern, with victims losing over £146m ($200m) so far this year, a significant increase from 2020. According to reports, the City of London police has seen a 30% surge in losses compared to the previous year, with 7118 reports of fraud in 2021. The majority of victims fall within the 18-45 age range, highlighting the vulnerability of younger individuals to online scams.
Detective Chief Inspector Craig Mullish noted the rise in cryptocurrency fraud reports in recent years, attributing it to the increased online presence of individuals that allows criminals to target unsuspecting victims with fraudulent investment schemes. The FBI reported over $246m in losses to cybercrime involving virtual currency last year, indicating the widespread impact of these fraudulent activities.
Fake celebrity endorsements are a common tactic used by crypto fraudsters, with approximately 79% of complaints mentioning these endorsements linked to cryptocurrency scams. Additionally, the rise of scam apps targeting cryptocurrency users poses a significant threat, with researchers uncovering 170 Android apps that defrauded users of $350,000 through non-existent services.
Recently, Sophos researchers uncovered a new scam called “CryptoRom,” a variation of traditional romance scams that lures individuals via dating sites and tricks them into investing in fake trading applications, resulting in criminals netting $1.4m. These incidents highlight the evolving nature of cryptocurrency fraud and the need for increased vigilance among investors.
As the cryptocurrency market continues to grow in popularity, it is essential for individuals to exercise caution and conduct thorough research before engaging in any investment opportunities. With the rise of sophisticated fraud schemes targeting unsuspecting victims, staying informed and vigilant is crucial to protecting oneself from falling victim to cryptocurrency fraud.