Data that has been published by Action Fraud revealed that £2 million was lost due to cryptocurrency scams between June and July this year.

Action Fraud stated that criminals are continuing to use social media platforms and even cold calling people in order to advertise investment schemes that promise to help people ‘get rich quick’. The criminals carrying out such scams convince their victims to sign up to cryptocurrency websites and give out personal information, such as their credit card information. When they have succeeded in getting their victim to sign up, they ask them to make an initial minimum deposit. The scam continues with the fraudster calling the victim and persuading them to invest more money to ‘achieve a greater profit.’

203 reports of this type of cryptocurrency fraud were reported to Action Fraud between 1st June 2018 and 31st July 2018. The total lost to this scam totaled £2,059501.29. However, even with the 203 reports filed, many of the victims were not aware that they were involved in the scam until the cryptocurrency website they were using was deactivated.

Pauline Smith, Director of Action Fraud, said: “It is vital for anyone who invests or is thinking of investing in cryptocurrencies to thoroughly research the company they are choosing to invest with. The statistics show that the opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and using every trick in the book to defraud unsuspecting victims.”

Action Fraud urges anyone who believes they may have been subjected to any type of cryptocurrency fraud to contact them and report it.

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