According to new data, the amount of cryptocurrency fraud that has been committed so far this year is already three times higher than in 2020.
Action Fraud found that crypto fraud has accrued more than £146m and has seen the average victim’s loss climb to an alarming £20,000.
Celebrities like Kim Kardashian are pledging phoney endorsements. The chair of the Financial Conduct Authority (FCA), warned investors last month not to take crypto advice from social media.
Scammers routinely pay social media influencers to pump and dump tokens. This is pure speculation. At the Cambridge international symposium about economic crime, Charles Randell from the City watchdog said that some influencers promote coins that do not exist.
Action Fraud received 558 reports of investment fraud in the period April 2020 to March 2021. These reports included a reference to a “celebrity endorsement”.
Craig Mullish, Temporary Detective Chief Inspector at the City of London Police, stated that reports of cryptocurrency fraud have increased dramatically over the last few years. This is not surprising considering everyone spends more time online.
We encourage everyone who is considering making an investment to do their homework first. This will help you to protect your investment and your money.
The FCA has not approved increasing numbers of advertisements for crypto assets, making those who are being scammed especially vulnerable.
Investors won’t have access to the Financial Ombudsman Service and the Financial Services Compensation Scheme in the event of investments going sour. This is why the FCA maintains a register that potential investors can review to make sure they are dealing with an authorized firm.
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