British Investors See £2M Losses Due To Crypto-Fraud

Around two million British pounds have been lost over a two-month period as cryptocurrency crimes continue within the UK, as per reports by the British national police reports on the 10th of August. Those committing the acts of fraud utilized social media platforms to promote “get rich quick” schemes as data from the last two months has revealed.

Heavy Losses

According to the police, the average loss was calculated to be around 11K English pounds and further revealed that false cryptocurrency mining and trading were among the most common and favored methods of fraud and theft. The process of mining is how cryptocurrencies are essentially created, such as Bitcoin or Ethereum, the two leading coins.

This differs from crypto jacking, a process of infecting a computer with malware to anonymously and subtly mine cryptocurrencies at the expense of the unaware owner of the device. Criminals have been taking advantage of this process by promoting false and misleading investments targeted at individuals and the market.

The Action Fraud project (AFP), stated that these scam artists will lure their targets into registering on a digital currency investment website and provide private and sensitive information including credit card numbers and details as well as copies of a driving license to register an account. Following the first investment by a potential target, the scammers will then make contact and encourage them to invest more funds.

In June and July, British residents filed over 200 submissions to the AFP at the reporting center within the UK for cyber crimes. This also comes as an effort on behalf of the NFIB, the central intelligence firm under London’s Police Department.

The AFP director, Pauline Smith, stressed the importance of thorough research prior to any investment within a company. She adds that the numbers display a clear abuse of markets in this fashion and evolving in their methods to scam investors. Additionally, the FCA also issued warnings against an illegal crypto-exchange under the name of Fair Oaks Crypto.

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