Almost half a billion pounds has been lost to cryptocurrency scams over the past three years, according to data from Action Fraud.
Scammers raked in £226m in 2021-22, up from £171m in 2020-21 and £71m the year before, a freedom of information request to the national crime reporting service has revealed.
The number of reports it received about crypto fraud increased to 10,030 in 2021-22, up 16pc on the previous year.
Law firm Pinsent Masons, which obtained the information, said despite the decline of many cryptocurrencies, small investors were still being lured in by “get rich quick” schemes.
The price of Bitcoin has fallen more than 70pc since hitting record highs last year, while the collapse of the world’s second-largest cryptocurrency exchange FTX has sent shockwaves through the crypto market.
Hinesh Shah of Pinsent Masons said he was concerned crypto fraudsters were deliberately targeting inexperienced investors.
“Whenever times are tough, fraudsters always seek to prey on less experienced investors by promising huge returns. Given the huge sums which some crypto investors made during the boom, scams involving cryptocurrencies can be especially potent for smaller investors who may be desperate to make a ‘quick buck’.”
