The U.K.’s CPS (Crown Prosecution Service) anticipates an uptick in the number of crypto-based scams in the upcoming years. However, it also states that the bitcoin and crypto-based scams are still relatively infrequent for the time being. The responsibility of CPS is to determine if the suspects should be charged. Those cases are then settled at courts. The CPS’s director of public prosecution, QC Max Hill, said that he anticipated a surge in the numbers of cases, including cryptocurrency. The CPS is famous for making decisions regarding the suspects who should be charged.
QC Max Hill elucidated that guarantees of high investment returns were a popular gambit employed by fraudsters, and he presumes cases including crypto to grow. The CPS predicts that 86% of reported fraud is presently cyber-related. The crypto scam situation worsened in the past year by the explosion of COVID-19, which thrust more people online. Moreover, the City of London police statistics reveals that 27,187 reports of cyber-crime were filed across the U.K. and Northern Ireland in 2019 and 2020. Out of that statistics, 5,581 involved reports describing cryptocurrency investments, amounting to a fifth of all reported cyber-crime incidents.
U.K.’s FCA On High Alert For Crypto Scams
Furthermore, the number of general fraud cases added 822,276 in the same period, implying that, notwithstanding the sudden increase in the fortunes of Bitcoin, and the broader crypto market, it still isn’t being promptly utilized by would-be fraudsters. Merely 0.6% of overall fraud cases are related to cryptocurrency. Contrarily, as little as 3% is linked to cyber-crime in common. Nevertheless, the growth of Bitcoin across 2020 didn’t go unrecognized by everybody. Scams comprised cryptocurrency spiked by 57% in December 2020, a year in which the world’s leading cryptocurrency was quintupled in value.
Bitcoin, the world’s leading cryptocurrency, has rallied over 400% over the last six months due to the increasing support from institutional investors and major tech players. It involves Tesla, Square, MicroStrategy, etc. There has been a surge in Bitcoin ETF adoption in Canada. Moreover, the U.K.’s FCA (Financial Conduct Authority) has also been on the high alarm to crypto scams in recent months. Growth in the market has left people exposed to being exploited. The regulator suggested investors should be equipped to lose “all their money” if they wish to invest in cryptocurrency products giving high returns.