Cryptocurrency scams triple in a year

Cryptocurrency scams triple in a year

Investment scams involving cryptocurrencies and crypto assets have lost over 27 million pounds ($34.38 million),  in the last financial year, with an average loss of £14,600 per victim

According to the UK’s Financial Conduct Authority (FCA), the number of crypto scam reports tripled from 530 to 1,834 within a year.

The report stated that scammers used social media platforms to promote their online trading platforms with a note such as “get rich quick”. They also further used fake celebrity endorsements and different images of luxury items which linked to professional websites where consumers were persuaded to invest.  

The report  further mentioned,

“Investors are often led to believe that their first investment has successfully made a profit” 

The scammers tempted consumers to invest more money and promised attractive deals. Investors were led to believe that their first investment made a profit, then they would urge investors to invest more money and introduce their friends and family, but the return stopped eventually. The customer account later was shut down and the scammers disappear, the FCA said.  

Mark Steward, FCA’s executive director of enforcement and market oversight warned investors and said,  

“Scammers can be very convincing so always do your own research into any firm you are considering investing with, to make sure that they are the real deal.”

Mark further requested the public to stay alert about any such kind of suspicious activities which promises high returns from online trading platforms.

The FCA also revealed its plan to start an advertising campaign to raise the awareness related to online trading scams.

What are your thoughts on the increasing crypto scams? Drop your comments below.

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