fbpx
Money

Cryptocurrency Scams And Frauds Triple In A Year

Investment scams involving cryptocurrencies such as bitcoin and foreign currency trading have tripled in a year, with the average victim losing £14,600, according to the UK’s Financial Conduct Authority (FCA).

The regulator and the police-run body Action Fraud are warning the public to be wary, with the scams typically promising high returns and carried out via bogus online trading platforms.

More than £27m was lost to frauds involving so-called crypto-assets and forex investments in 2018-19, said the FCA.

Crypto-assets is a broad term covering many different types of products. The most popular include tokens such as bitcoin and litecoin. The FCA calls these “exchange tokens,” though they are often referred to as cryptocurrencies, crypto coins or payment tokens.

The number of such scams reported more than tripled last year to 1,834, from 530 in 2017-18.

Fraudsters often used social media to promote their “get rich quick” online trading platforms, the FCA said. Posts often used fake celebrity endorsements and images of luxury items such as expensive watches and cars, that link to professional-looking websites where consumers are persuaded to invest.

Investors will often be led to believe that their first investment has successfully made a profit.

The fraudster will then contact the victim to urge them to invest more money or introduce friends and family, but eventually the returns stop, the customer’s account is closed and the scammer disappears with no further contact.

This story originally appeared in The Guardian. Image courtesy of Pixabay.

Join The Discussion

YouTube Star Who Humiliated Homeless Man Given Prison Term
YouTube Star Who Humiliated Homeless Man Given Prison Term
Two Dead And 15 Injured In Japan
Two Dead And 15 Injured In Attack On Children In Japan
Britain Brexit
Brussels Fears No-Deal Brexit Could Follow May’s Departure
Trump Warns Iran Not To Threaten US
Trump Warns Iran Not To Threaten US Or It Will Face ‘End’
Bitcoin Prices Have Tripled Since December
Bitcoin Prices Have Tripled Since December-What’s Next?
Can Facebook Become A Trusted Bank
Can Facebook Become A Trusted Bank?
Japan Set To School G20 On Cryptocurrency
Japan Set To School G20 On Cryptocurrency [Video]
Cryptocurrency Scams And Frauds Triple
Cryptocurrency Scams And Frauds Triple In A Year
5 Reasons To Use Video In Your Digital Marketing Mix
5 Reasons To Use Video In Your Digital Marketing Mix [Infographic]
Your Startup Won't Make It To 2022 Without Video In Sales
Your Startup Won’t Make It To 2022 Without Video In Sales
The State Of Content Marketing In 2019
The State Of Content Marketing In 2019 [Infographic]
Words That Make People Spend Money
18 Words That Make People Spend Money [Infographic]
Facebook to Demote Slow-Loading Stories on News Feed
Facebook Adds New Ranking Factors Into News Feed Algorithm
New Tools For Messenger
New Tools For Messenger And WhatsApp
Facebook Releases New Guide On Creating Stories
Facebook Releases New Guide On Creating Stories [Infographic]
Twitter Reduces Number Of Accounts Users Can Follow Per Day To 400
Twitter Reduces Number Of Accounts Users Can Follow Per Day To 400