Crypto and Forex Scam Reports Tripled in the UK Last Year, Watchdog Says

May 21, 2019
68 Views

Reports of cryptocurrency and foreign exchange scams in the U.K. grew threefold in the last financial year – spiking to 1,834 from 530 in the previous year, according to the country’s financial watchdog.

Citing data from Action Fraud, the Financial Conduct Authority (FCA) announced Tuesday, although the number of reported cases has increased, total reported losses actually fell from about £38 million ($48 million) to £27 million ($34 million). The average individual loss has also dropped to £14,600 ($18,575) from £59,600 ($75,827).

The majority (81 percent) of the reported cases were related to cryptocurrency scams, the regulator added.

Action Fraud director, Pauline Smith, said:

“These figures are startling and provide a stark warning that people need to be wary of fake investments on online trading platforms. It’s vital that people carry out the necessary checks to ensure that an investment they’re considering is legitimate.”

Scammers have increasingly been using social media platforms to promote their “get rich quick” schemes, often using fake celebrity endorsements, the watchdog said. Investors were often led to believe that their first investment would turn a profit.

Earlier this year, the FCA published a survey, saying that 73 percent of U.K. consumers don’t know what a cryptocurrency is, yet many fall prey to such schemes after being drawn to the lure of quick profits. The regulator at the time said that it will consult on banning the sale of certain cryptocurrency derivatives to retail investors later this year – a ban the authority has been considering since last November.

The FCA has warned several times on cryptocurrency derivatives products and unregistered crypto brokerage firms. It is also working with the U.K. government and the Bank of England, as part of the country’s Cryptoassets Taskforce effort to form regulatory guidelines for the cryptocurrency space.

U.K. coins image via Shutterstock 

https://www.coindesk.com/crypto-and-forex-scam-reports-tripled-in-the-uk-last-year-watchdog-says


Warning: A non-numeric value encountered in /home/btcethereum/public_html/blog/wp-content/plugins/magazine-plug/shortcodes/s-posts-tabs.php on line 18

Warning: A non-numeric value encountered in /home/btcethereum/public_html/blog/wp-content/plugins/magazine-plug/shortcodes/s-posts-tabs.php on line 18

Warning: A non-numeric value encountered in /home/btcethereum/public_html/blog/wp-content/plugins/magazine-plug/shortcodes/s-posts-tabs.php on line 18

Warning: A non-numeric value encountered in /home/btcethereum/public_html/blog/wp-content/plugins/magazine-plug/shortcodes/s-posts-tabs.php on line 18

Warning: A non-numeric value encountered in /home/btcethereum/public_html/blog/wp-content/plugins/magazine-plug/shortcodes/s-posts-tabs.php on line 18

Warning: A non-numeric value encountered in /home/btcethereum/public_html/blog/wp-content/plugins/magazine-plug/shortcodes/s-posts-tabs.php on line 18

You may be interested

France Says It Will Block Facebook Libra in Europe: Report
Crypto News
Crypto News

France Says It Will Block Facebook Libra in Europe: Report

btcethereumadmin - September 12, 2019

The French finance minister has said the nation plans to block Facebook’s Libra cryptocurrency in the EU over concerns that…

Facebook Libra Brings ‘Risks and Opportunities’: Swiss Watchdog Chief
Crypto News
Crypto News

Facebook Libra Brings ‘Risks and Opportunities’: Swiss Watchdog Chief

btcethereumadmin - September 12, 2019

The head of the Swiss financial markets watchdog has spoken out on the perceived pressure for the nation arising from…

Binance to List Its New Dollar-Backed BUSD Stablecoin Next Week
Crypto News
Crypto News

Binance to List Its New Dollar-Backed BUSD Stablecoin Next Week

btcethereumadmin - September 12, 2019

Binance’s new dollar-backed stablecoin, BUSD, created in partnership with the Paxos Trust Company, will be made available for trading on…

Leave a Comment

Your email address will not be published.