UK investors lost at least £186m last year to cryptocurrency scams
UK individuals have lost over £186 million to cryptocurrency fraud over the last year, says Mattison Public Relations, the communications consultancy*.
9,850 individuals reported that they have lost money in cryptocurrency frauds over the last year, up from 9,600 in the previous year.
The dramatic rally in cryptocurrency prices that begun in January 2023 and ran up until February 2025 has acted as a powerful recruiting sergeant for crypto fraudsters. Cypto fraudsters have typically preyed on investors’ fears of missing out on the dramatic gains that can be made in cryptocurrencies.
UK regulators and social media platforms have struggled to keep pace with the amount of advertising being undertaken by fraudulent cryptocurrency businesses. For example, Meta shut down two million accounts in the last year that it suspected were connected to financial scams, particularly cryptocurrency scams.
The increased use by fraudsters of AI to email victims or to generate a higher output of genuine looking investment advertising means both social media platforms and enforcement agencies are increasingly over stretched.
To help reduce fraud, Mattison Public Relations says that the mainstream cryptocurrency industry needs to invest more in educating the public to the risks of crypto fraud. Most of the education work in the UK has been left to regulators such as the FCA and the high street banks.
Nick Mattison, Partner of Mattison Public Relations points out that DrinkAware, GambleAware and The Portman Group have all been funded by their relative industries either partly or exclusively. Similarly, the cryptocurrency industry should properly fund efforts to educate the public as to how to identify and avoid a cryptocurrency fraudster.
Says Nick Mattison: “Considering the profits enjoyed by the crypto industry they should do the right thing and sponsor more advertising and education aimed at warning the public of the risks of crypto fraud.”
“One of the reasons why regulators are so wary of cryptocurrencies is that the sector seems to be a magnet for fraud. Proper investment from the industry to counter the threat of fraud would benefit it as it struggles to gain more political and regulatory support in the UK.”
The endorsement of legal crypto businesses by the likes of Donald Trump, Gwyneth Paltrow and Premier League teams has inadvertently increased the target market for crypto fraudsters.
Adds Nick Mattison: “Technology has made the job for fraudsters of accessing potential victims through social media easier than ever.”
“Crypto fraud is still running at a worryingly high level and there is no certainty that regulation of the sector by the FCA will make a major dent in that level of fraud.”
* Year end Oct 31 2024, based on figures provided by Action Fraud, the national reporting centre for financial fraud