Cryptocurrency fraud and scams in the United Kingdom grew by 32% in the past year, the Financial Times reported Monday, citing information obtained from police unit Action Fraud.

Crypto Fraud on the Rise in the UK

According to the report, bad actors stole about £226 million ($272 million) from UK investors between October 2021 to September 2022, a 32% increase from the same period in the previous year. The number of reported cases spiked by 16% to 10,030.

The country’s financial services trade association, the UK Finance, disclosed that the figures are part of a broader “epidemic” of fraud, which rose during the COVID-19 pandemic that saw growth in people’s online financial habits. Generally, fraud increased by 8% year on year to £1.3 billion ($1.5 billion) in 2021.

The Terra-Luna ecosystem collapse in May caused a contagion that led to £33 million ($39.7 million) in reported losses. According to law firm Pinsent Masons, an increasing number of consumers have fallen victim to rug pulls since the onset of the crypto winter.

In November 2021, the BBC reported that UK retail investors lost about £2.5 million ($3 million) to the creators of the Squid Game token (SQUID) after they disappeared with funds.

“Whenever times are tough, fraudsters always seek to prey on less experienced investors by promising huge returns. Given the huge sums which some crypto investors made during the boom, scams involving cryptocurrencies can be especially potent for smaller investors who may be desperate to make a ‘quick buck,’” said Pinsent Masons’ forensic accountant Hinesh Shah.

A Rise in Fake Celebrity Endorsements

Furthermore, the police unit recorded more losses as citizens have fallen prey to pump-and-dump schemes and fake celebrity endorsements.

Action Fraud revealed that incidents like the impersonation of Elon Musk by criminals to syphon millions of pounds from US consumers in crypto fraud are occurring in Britain.

The Financial Conduct Authority (FCA) has often raised concerns about consumers investing in high-risk assets like crypto. Some UK banks have also placed restrictions on crypto payments, citing the high fraud rate.