The UK government's new Fraud Strategy 2026 to 2029 document highlights cryptocurrency as a "growing risk." The report notes that crypto is increasingly integrated into daily activities and plays a role in facilitating investment fraud. Blockchain analysis firm Chainalysis, however, points to crypto's transparency as a tool for tracking and combating criminal activity.
The strategy emphasizes a system-wide approach to fraud, requiring enhanced coordination among government, police, private platforms, and civil society. Operational measures include a new public-private Online Crime Centre and an expanded "Stop! Think Fraud" campaign.
Chainalysis estimates that up to $17 billion in crypto was transferred to scam and fraud addresses globally in 2025, with sophisticated scam networks employing AI-driven social engineering. The firm advocates for integrating blockchain analytics into existing fraud-sharing frameworks across banks, fintechs, and crypto firms, citing crypto's transparency as an advantage over traditional finance.
However, the discussion around privacy tools for crypto is also gaining traction, with the U.S. Treasury acknowledging that some mixers can serve lawful privacy purposes.
The report underscores the transnational nature of fraud, with a significant portion originating overseas. It points to "scam compounds" as a growing issue, leading to humanitarian crises and prompting international sanctions against entities involved in cyber scams. The U.S. Scam Center Strike Force has reported substantial crypto seizures and freezes in its efforts to combat these operations.