On April 9, 2025, the City of London Police and the National Reporting Centre Action Fraud announced an alarming figure: 66% of investment fraud cases in the UK in 2024 were related to cryptocurrency, causing losses of up to 549 million USD. With the rise of scams through social media and celebrity impersonation, is crypto becoming a 'fertile ground' for criminals? Let's analyze in detail.


Crypto: 'The Perpetrator' in 66% of Investment Fraud Cases in the UK

According to reports from the City of #London Police and Action Fraud, in 2024, crypto accounted for 66% of all reported investment fraud cases in the UK – an increase of 16% compared to 2023. Total financial losses from investment fraud reached 830.4 million USD (649 million GBP), with crypto accounting for losses of 549 million USD (428 million GBP). While the number of reports sent to Action Fraud decreased by 7% in 2024, total financial losses increased by 13%, indicating that scams are becoming more sophisticated and causing greater losses.


This statistic aligns with global trends. According to the latest crypto crime report from Chainalysis, revenue from cryptocurrency scams worldwide could reach a record 12.4 billion USD in 2024 – higher than ever. In the UK, the rise in crypto fraud is supported by digital platforms, especially social media, which are becoming the main 'playground' for criminals.


Social Media: 'A Powerful Arm' for Scammers

The report indicates that 36% of investment fraud cases are related to social media, with WhatsApp, Facebook, and Instagram being the three most popular platforms, accounting for 40%, 18%, and 14% of social media-related reports, respectively. Criminals use these platforms to reach victims, often by impersonating celebrities or making promises of 'huge' profits from crypto investments.


Notably, 2% of fraud cases involve impersonating celebrities, using AI-generated videos to deceive victims. The most impersonated individual is British financial expert Martin Lewis (44%), followed by Elon Musk (40%) and British television host Jeremy Clarkson (8%). These fake videos often promote 'ghost' crypto projects, promising high returns to lure inexperienced investors.


Why is Crypto So Vulnerable to Fraud?

James Pritchard, head of private prosecutions at law firm Watson Woodhouse (UK), shared with Decrypt that crypto fraud is on the rise due to the unique nature of cryptocurrency. He explains: 'Things that seem too good to be true have actually happened in the world of crypto.' For instance, in 2010, Laszlo Hanyecz bought two pizzas for 10,000 BTC – that Bitcoin is now worth over 770 million USD (based on the price of 77,600 USD/BTC on April 9, 2025). Some traders have also made 'huge' profits from crypto, creating the mindset that crypto investment can yield 'dream' returns.


Criminals exploit this mentality to make promises of high returns, making victims more susceptible than traditional forms of fraud – like the infamous 'Nigerian prince' emails that Pritchard encountered in his career. Moreover, behaviors often considered 'red flags' in traditional investing – such as sending money to foreign entities – are normalized in crypto, lowering investors' vigilance. Pritchard emphasizes: 'The anonymity and ease of global money transfer of crypto are the main reasons why criminals prefer it.'


Challenges in Dealing with Crypto Fraud

Although blockchain is said to be transparent, tracing crypto transactions is not easy. Pritchard states: 'There are experts who can trace transactions, but it is not straightforward. If a wallet can be traced back to its source, legal prosecution may be very difficult, if not impossible, depending on where the fraudster resides.' This explains why crypto fraud is hard to dismantle, even as authorities in the UK and internationally are improving their ability to recover stolen crypto.


Detective Oliver Little from the City of London Police warns: 'Investment scammers are often very skilled, making enticing offers about how much money you can make in a short time. Don't be tempted by promises of 'easy money', because the world of stocks and shares is not that simple.'


Impact on the Crypto Market


  • Loss of Trust: With 66% of investment fraud in the UK related to crypto, investor trust, particularly among individual investors, may be severely affected. This exacerbates the pessimistic sentiment in the market, which has already decreased by 11.65% in market capitalization (2.88 trillion USD) in Q1/2025.


  • Price Pressure: The prices of Bitcoin and Ethereum may face additional pressure if scams continue to increase, reducing capital inflow into the market.


  • Investor Warning: The report serves as a warning for investors in the UK and globally, especially as scams through social media and celebrity impersonation become increasingly sophisticated.



Conclusion: Crypto – 'Gold Mine' or 'Minefield' for Investors?

With 66% of investment fraud in the UK in 2024 related to crypto, causing losses of 549 million USD, cryptocurrency is becoming a 'fertile ground' for criminals. The increase in scams through social media (WhatsApp, Facebook, Instagram) and celebrity impersonation (Martin Lewis, Elon Musk) indicates that criminals are becoming increasingly sophisticated, exploiting the 'get-rich-quick' mentality of investors. Although authorities are making efforts, tracing and prosecuting remains challenging. In the context of an unstable crypto market, investors need to be more vigilant than ever to avoid becoming the next victims. Can crypto regain trust, or will it forever be a 'minefield' for investors? The answer depends on your own vigilance.


Risk Warning: Crypto investment carries high risks due to price volatility and the risk of fraud. Please do thorough checks and only invest from reliable sources. #anhbacong