UK watchdog says currency and crypto scams hit £27 million

UK watchdog says currency and crypto scams hit £27 million

An illustration photo shows a Bitcoin (virtual currency) hardware wallet and a coin are seen in an
FILE PHOTO: A Bitcoin (virtual currency) hardware wallet and a coin are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, May 27, 2015. REUTERS/Benoit Tessier

LONDON: Scams in Britain involving currencies and crypto assets like Bitcoin totalled £27 million (US$34.38 million) in the last financial year, with average losses of £14,600 per victim, the Financial Conduct Authority (FCA) said on Tuesday (May 21).

Reports of scams more than tripled in the year that ended in April to 1,800 as fraudsters often used social media to promote their "get rich quick" online trading platforms, according to an FCA statement.

"Investors will often be led to believe that their first investment has successfully made a profit," it said.

The fraudster then contacts the victim to invest more money with a false promise of greater profits. The customer account is later closed and the scammer disappears, the FCA said.

The FCA said it would run advertising to raise awareness of online trading scams.

"We're warning the public to be suspicious of adverts which promise high returns from online trading platforms," said Mark Steward, the FCA's executive director of enforcement and market oversight.

Source: Reuters

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