Crypto Scammers Target UK Residents, Average Losses Hit £15,000: TRM Labs Report

Crypto Scammers Target UK Residents, Average Losses Hit £15,000: TRM Labs Report

According to recent data released by TRM Labs, residents of the United Kingdom have been falling victim to crypto scams, with an average loss of £15,000 since October 2022, prompting regulatory and public awareness initiatives.

TRM Labs disclosed that British residents have been experiencing average losses of just under £15,000 (approximately $20,000) since October 2022, with the highest reported loss by a UK victim during this period surpassing £550,000 (around $706,000).

Among the reported cases, investment frauds accounted for 16%, followed by phishing scams at 9%. Notably, TRM Labs highlighted that phishing scams predominantly target the Ethereum blockchain, constituting over 90% of such incidents.

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

Another prevalent form of crypto fraud identified is romance fraud, commonly referred to as “pig butchering” scams, which exploit psychological manipulation to promise victims significant returns on their investments.

According to TRM Labs data, once illicit funds are set in motion, they are twice as likely to flow through unlicensed service providers compared to licensed ones. Analysts at the San Francisco-based firm also observed that despite the prevalence of crypto scams, regulatory measures and public awareness campaigns appear to be making headway, with a 16% decrease in global crypto-related fraud from 2022 to 2023.

Similarly, the Financial Conduct Authority, the UK’s financial watchdog, reported a notable deceleration in the growth rate of investment fraud in both fiat and crypto in 2023. The number of victims increased by only 4.3%, down from 28% in 2022, signaling a potential positive impact from regulatory interventions and increased awareness efforts.

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