$255 Million USD Lost Crypto Scams in 2018, UK Financial Watchdog Affirms


A lot of money was lost due to scams back in 2018 and some of this money was related to what are known as the crypto scams, the ones that use Bitcoin and similar cryptos to promote their scams, whether they use them or not. Now, the United Kingdom Financial Conduct Authority (FCA) has summarised the losses of local investors last year and came up with a number.

The FCA affirms that $197 million GBP (around $255 million USD) has been lost to scammers and the number counts only British citizens which denounced scams to the institution. According to the FCA, the most common scam involved investments in several markets like bonds, forex markets and cryptos. In average, each victim lost about $37,000 USD.

Also, another find was that now less people are using cold calls in order to scam people and are using more fake sites instead. Online sources were used 9% more than they were in the last year. However, the number of emails and contact via social media is still very high.

FCA Warns Investors Against Scams

In fact, the high numbers have prompted the FCA to warn investors once more. The institution used data to determine that the first quarter of each year is generally the time in which the scammers are more active and can be considered the “peak season” of this kind of crime.

The FCA will continue its job in 2019, which includes the investigation of any company that has a chance of being a scam. For instance, the FCA was investigating 18 companies in December over using cryptos in an illegal manner.

Crypto scams made people lose $1.7 billion USD around the whole world last year, according to new research made by CipherTrace. This means that this sector of scammers is still very active and that the authorities have a long ahead of themselves in order to stop this problem.

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