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Cryptocurrency Fraud in the United Kingdom on the Rise

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The amount of money lost to cryptocurrency fraud in the United Kingdom in 2021 is already higher after the first ten months of 2021 than in the whole of 2020, according to figures from Action Fraud, the British national centre for fraud and cybercrime.

 

According to Action Fraud, which is part of the British police, 146.2 million pounds have been lost since the beginning of this year due to fraud with cryptocurrencies, such as bitcoins.

The average victim saw more than 20,000 pounds go up in smoke. Criminals lure people with alleged celebrity testimonials about crypto investments and investments. This usually happens through social media. Eleven percent of the victims were young people between 18 and 25 years old; more than half of the victims were between 18 and 45 years old.

Between April 2020 and March 2021, Action Fraud already received 558 fraud reports in which the criminals used a known headline, which in reality had nothing to do with the product in question. In almost 80 percent of the cases, it was advertising for investments in crypto coins.

According to Inspector Craig Mullish of the London Police, complaints about crypto fraud have been on the rise for years. “We would advise anyone thinking about investing to do some thorough research and think first,” he says.

Most firms that advertise crypto investments in the UK are not approved by the financial watchdog FCA. This means that customers cannot rely on the services of the Financial Ombudsman (FOS) or the FSCS compensation mechanism when something goes wrong.

In our country, financial watchdog FSMA (Financial Services and Markets Authority) already warned about fraud with crypto coins in 2018. But, unfortunately, here too, this is often done based on falsified statements and interviews with well-known heads.

In the first half of this year, the FSMA received 1,087 questions and reports from consumers about fraud and illegal offers of financial products and services, increasing 60 percent compared to the first six months of 2020. Cryptocurrencies accounted for 88 reports, one increase of 54 percent.

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