Level 2

Victims lose thousands as crypto scams soar - FCA

By Abigail Townsend

Date: Tuesday 21 May 2019

Victims lose thousands as crypto scams soar - FCA

(Sharecast News) - The number of scams involving cryptoassets and foreign exchange investments tripled last year, with victims losing more than £27m in total, according to research published on Tuesday by the regulator.
The Financial Conduct Authority, along with Action Fraud, said 1,834 crypto and forex investment scams had been reported in 2018/19, a significant jump on the previous year's figure of 530.

On average, victims were each scammed out of £14,600, bringing the total loss to £27.37m.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: "We're warning the public to be suspicious of adverts which promise high returns from online trading platforms. Scammers can be very convincing, so always do your own research into any firm you are considering investing with. If in any doubt, don't invest."

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: "Crypto scams are flooding the internet, complete with fake celebrity endorsements and promises of an overnight luxury lifestyle."

She said would-be investors should ensure firms are registered with the FCA and use the contact details listed on the register to get in touch, "just in case scammers are impersonating a reputable brand".

Coles added: "The simplest way to stay safe is to bear in mind that if anyone is offering incredible overnight returns without risk, it's a scam."

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page