Recent data revealed by TRM Labs shows that British residents have been losing an average of under £15,000 (nearly $20,000) to crypto scams since October 2022. The highest reported loss by a victim in the UK during this period exceeded £550,000 (~$706,000).

Investment frauds constituted 16% of the reported cases, followed by phishing scams at 9%. TRM Labs highlighted that phishing scams mainly occur on the Ethereum blockchain, with over 90% of such incidents taking place there.

“Fraudsters will often use narratives related to the metaverse, charities, or trading gains to lure victims into their schemes.” – TRM Labs

Another common form of fraud involving crypto is romance fraud, also known as “pig butchering” scams, which rely on psychological manipulation to promise victims substantial returns on their investments.

According to TRM Labs, once dirty funds are in motion, they are twice as likely to pass through unlicensed service providers compared to licensed ones. Despite the prevalence of crypto scams, regulatory actions and public awareness efforts seem to be making a positive impact, with a 16% reduction in global crypto-related fraud from 2022 to 2023.

Similarly, the Financial Conduct Authority in the UK reported a significant slowdown in the growth rate of investment fraud in fiat and crypto in 2023, with the number of victims increasing by only 4.3%, down from 28% in 2022.

Stay informed about the latest news and updates on crypto scams and regulations by exploring more articles on Global Crypto News.

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