The UK government has published its Fraud Strategy 2026 to 2029 policy document, explicitly highlighting cryptocurrency as a "growing risk" to consumers and businesses. The report, issued by the Home Office, frames fraud as a system-wide threat and outlines a coordinated response involving government, police, private-sector platforms, and civil society.
The strategy notes that cryptocurrency has become part of "routine activity" in daily life, alongside social media and digital payments. However, it points to the technology's role in facilitating investment fraud, where "victims are deceived into willingly transferring money" through scams on social media and messaging platforms. The document states that "vulnerabilities remain" in combating fraud within emerging payment systems like crypto.
Operational measures announced include a new public-private Online Crime Centre, an expanded "Stop! Think Fraud" public awareness campaign, and the nationwide rollout of the Report Fraud service. The strategy also references existing government actions, such as the Financial Conduct Authority's (FCA) crackdown on crypto marketing since 2023 and HM Treasury's comprehensive digital asset regulatory framework scheduled for implementation in October 2027. This framework will require crypto companies to obtain FCA authorization and comply with its rules to help combat fraud.
In comments to Decrypt, Jordan Wain, UK Public Policy Lead at blockchain analysis firm Chainalysis, provided context on the scale of the issue. He noted that globally in 2025, "up to $17 billion in crypto was transferred to addresses associated with scams and fraud." Wain argued that the UK's strategy could be strengthened by "hard-wiring blockchain analytics into existing fraud-sharing frameworks" across banks, fintechs, telecoms, online platforms, and crypto firms. He emphasized that crypto's transparency creates a "powerful flywheel of fraud disruption" by giving investigators financial flow visibility often harder to achieve in traditional finance.
The report highlights the cross-border nature of crypto-related fraud, with Chainalysis data indicating roughly three-quarters of fraud against UK individuals and businesses originates from or is facilitated from overseas. It describes "poly-criminal" operations incorporating human trafficking, money laundering, and organized crime, spreading from hubs in Southeast Asia to South America and Europe. The document references the growing issue of "scam compounds" in Southeast Asia and notes that the cross-agency Scam Center Strike Force (established November 2026) announced last month that crypto seizures and freezes had reached $580 million.
Home Secretary Shabana Mahmood and Minister of State Lord Hanson of Flint stated, "This is not just about reducing crime; it is about restoring confidence... Every pound stolen through fraud is a pound not reinvested in our economy." The strategy aims to make the UK "a safer place to live, work, and do business" and send a "clear message to criminals."
