TRM Labs reveals that UK residents lose an average of £15,000 to crypto scammers
New figures released by TRM Labs have shed light on the extent of cryptocurrency scams in the United Kingdom, revealing that the average loss suffered by British residents since October 2022 is just under £15,000 ($20,000). The highest reported loss during this period was over £550,000 ($706,000). Investment fraud was the most common type of scam, accounting for 16% of reported cases, followed by phishing scams at 9%. Interestingly, TRM Labs found that phishing scams were predominantly occurring on the Ethereum blockchain, making up over 90% of such incidents.
Another type of fraud that has been prevalent in the crypto space is romance fraud, also known as “pig butchering” scams. These scams rely on psychological manipulation to persuade victims that they will receive significant returns on their investments.
TRM Labs’ data also revealed that once illicit funds are in motion, they are twice as likely to pass through unlicensed service providers compared to licensed ones. However, the company’s analysts noted that regulatory actions and public awareness campaigns seem to be having a positive impact, with global crypto-related fraud decreasing by 16% from 2022 to 2023.
The Financial Conduct Authority, the British financial watchdog, also reported a significant slowdown in the growth rate of investment fraud in both fiat and crypto in 2023. The number of victims increased by only 4.3%, compared to a 28% increase in 2022.
It is clear that crypto scams remain a significant concern, but the efforts of regulators and the public are making a difference in combating these fraudulent activities.
