Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
British police have warned the public about crypto-related scams, revealing $2.5 million worth of losses this summer.
British police have warned the public about fraudulent investment schemes involving cryptocurrencies, the volume of which has led to 2 million pounds ($2.55 million) worth of losses this summer, according to an announcement published August 10.
In the announcement, the police cite statistics prepared by the Action Fraud national reporting center for fraud and cyber crime, which shows that in June and July victims reported losses of $2.5 million in cryptocurrency scams. The average loss totaled to roughly 10 thousand pounds ($12,700 thousand) per person. Director of Action Fraud Pauline Smith said:
âItâs 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 opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and using every trick in the book to defraud unsuspecting victims.â
Fraudsters reportedly lure potential victims with âget rich quickâ investment schemes in crypto mining and trading. When a person signs up to a fraudulent digital currency investment website, they are asked to provide personal data like credit card details or driverâs licence numbers to open a trading account. Once the victim makes an initial deposit, fraudsters persuade them to invest more to gain a greater profit.
In order to fight fraudulent activity involving cryptocurrencies, the City of London Policeâs Economic Crime Academy (ECA) has reportedly developed a one-day âCryptocurrencies for Investigatorsâ course to train officers to recognize and manage crypto in their investigations.
This week, the U.K. financial watchdog, the Financial Conduct Authority (FCA), issued two warnings over crypto-related âcloneâ companies, which claim to be authorized by the FCA. The first firm called Fair Oaks Crypto allegedly tried to hoodwink potential victims by claiming that they represent Fair Oaks Capital Ltd. The second, Good Crypto was reportedly giving out  âfalse details or mix[ing] these with some correct details of the registered firm,â which in this case was London-based Arup Corporate Finance.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.