City of London Police and Action Fraud, a national reporting organization, have reported that 66% of the investment frauds in the UK were crypto-related.
This percentage marks an increase of 16% over 2023, with victims collectively losing a total of $830.4 million (£649 million), meaning that crypto fraud cost UK residents some $549 million (£428 million).
Although the number of Action Fraud complaints declined by 7 percent in 2024 the financial loss increased 13%.
This data shows how fraudsters are increasingly reliant on social media, with 36% all of the reports mentioning one or more social networking sites.
WhatsApp, Facebook and Instagram accounted for the majority of scam reports, with 40%, 18% and 14%.
Note that AI-generated videos were used by fraudsters to deceive victims in 2% out of all fraud reports.
Elon Musk and British TV Presenter Jeremy Clarkson were also popular impersonators.
The City of London Police has reported that scammers have become more sophisticated with their digital and social media platforms.
Oliver Little, Detective Superintendent said: “Investment fraudsters are often extremely skilled at what they do. They will create a persuasive and alluring pitch about how much they can earn you in a very short time. “Do not be seduced by the promise of making ‘easy money’ as the world of stocks and shares is anything but.”
Action Fraud’s figures on the growing prevalence of cryptocurrency frauds also finds support from UK-based legal firms, with James Pritchard—the Head of Private Prosecutions at Watson Woodhouse—telling Decrypt He says that his experience shows an increasing number of scams involving crypto currency.
He said, “I do believe that cryptocurrency fraud has increased in frequency.” Pritchard’s explanation of how cryptocurrency is being used more and more in fraud and why, makes it particularly fascinating. It explains the blurring of fiction and reality.
In the early days of his career, he recalled a client who came to him with a note claiming that it was from a prince in Africa, asking for help to get the millions he had in the UK.
Pritchard says that his client, who was “desperate”, believed what had been said to her, but the scam was “clearly”.
But crypto is different, he said. Things that seemed too good to believe have actually happened.
Pritchard uses as an example how Laszlo Hannyecz, a famous Bitcoin trader in 2010, paid 10,000 BTC (now worth $770m) for two Pizzas. Some traders also made “astronomical profit”.
“And scammers prey on this,” he added. They promise amazing returns. But because crypto is so new, I think people will be more likely to trust them than if they were promised in a letter by an African prince.
Likewise, many things that may be considered red flags in more traditional investing—such as sending money to offshore entities—are “run of the mill” in crypto, something which again may weaken would-be defenses against scams.
Pritchard says that scammers are attracted to crypto because of its anonymity and the ease with which it can be transferred globally. However, the blockchain’s transparency may not make tracking them easy.
He said, “There is a specialist who can do this, but it takes a lot of time. If the wallet could be tracked back to its source depending where the owner resides, then pursuing legal action would prove extremely difficult if not even impossible.”
This analysis suggests that Action Fraud’s 2025 figures may show a continued increase in cryptocurrency theft, even though authorities in the UK or elsewhere have become more adept at recovering stolen crypto.
It would be consistent with the latest global statistics from Chainalysis. In its most recent crypto crime report, it suggests that international cryptocurrency scam revenues may have reached record levels of up to $12.4 billion.
Stacy Elliott edited this article.
