United Kingdom Reports Crypto Scam Losses Worth $2.5 Million USD This Summer Already

The British Police has recently divulged an information that scams related to the cryptocurrency market have made 2 million GBP ($2.55 million USD) worth of losses in this summer. The information was made together with a public announcement that fraudulent schemes with crypto are very common and investors should be cautious.

The statistics come from the Action Fraud national reporting center for fraud and cyber crime. The average loss per investor was roughly 10,000 GBP ($12,700 USD).

According to the director of Action Fraud, Paul Smith, it is very important that any person who is thinking of investing in cryptos make a proper research about the company in which this person intends to invest.

He states that most scammers take advantage of people in this market and that they use many tricks to fool unsuspecting victims. Because of this, proper research and being well-informed is important to avoid traps.

“Get Rich Quick”

Unsurprisingly, the way that scammers lure more people is by promising that they will “get rich quick”. Bitcoin and cryptocurrencies have become strong buzzwords since last year and, as not a lot of people know them very well, they end up falling for the scams like crypto mining and trading that are not actually real.

Generally, people have to provide personal data like the credit card details to open a trading account. As soon as they make the initial deposit, which is generally not very big, they are often persuaded to make more investors to get more profit. After that, they steal the money and sometimes the information from the victims.

London Police On The Offensive

As a way to train police officers to help people in this situation, the City of London Police’s Economic Crime Academy (ECA) has developed a short one-day course: Cryptocurrencies for Investigators. This way, the officers are trained to recognize cryptocurrencies and understand them for when they have to investigate cases related to them.

The Financial Conduct Authority (FCA), has recently issued two warnings of “clone” companies in the UK which are unauthorized. The first company is called Fair Oaks Crypto and claims to represent Fair Oaks Capital Ltd. The other one is Good Crypto, which has been telling that it was a part of Arup Corporate Finance. The authorities are investigating these companies.

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