 in a crypto scam, prompting police to issue a warning.){kind=link}
UK’s Kent has seen a different type of crypto scam taking place, making police issue warning. According to BBC reports, police have issued a warning after nine Kent residents lost a total of £1 million ($1.3M) in a cryptocurrency fraud.
The case comes at a time when the entire UK has seen a steady rise in crypto based scams, frauds and illegal activities.
How Did The Fraud Take Place?
According to police, the victims’ personal information was used to create “fake Action Fraud reports” after it was leaked online. The central reporting hub for fraud and cybercrime in the UK is called Action Fraud.
Later, a person posing as a police officer called people and told them that an inquiry had been started. The victims were instructed to “expect a call from the crypto wallet host” by the fictitious police.
After that, they got a second call from someone claiming to be “a security officer” who requested for their seed phrase, which is a set of 12 or 24 syllables that users can use to control their cryptocurrency wallets.
According to investigators, the scammers subsequently transferred and stole money using that information.
Also Read: UK’s Financial Regulator Gives Green Light to Coinbase’s Crypto Operations
UK Sees Rise in Crypto Scams
The new fraud case comes as UK grapples with a rise in crypto scams. Just previously in the trading day, a man from the UK was sentenced to four years in prison after being found guilty of operating cryptocurrency automated teller machines unlawfully in the country.
In 2024, UK people lost millions of pounds, often due to bogus investment proposals, Ponzi schemes, and phishing scams.
One example is “cryptocurrency investment fraud,” where scammers pretend to be reliable financial advisors or cryptocurrency platforms to deceive victims into purchasing fake digital assets. Social media platforms or fake celebrity endorsements are frequently utilized to lure victims by making scams seem more real.
An other example is the rise of “rug pulls,” where cryptocurrency developers abandon projects after raising a sizable sum of money, leaving investors with worthless tokens.
UK’s FCA Keeps Strict Watch Over Crypto Sector
The UK’s Financial Conduct Authority, or FCA, has repeatedly warned the public to be cautious and avoid high-risk trades. Because using cryptocurrency makes frauds more likely, regulation and education are crucial to protecting consumers from losing money.
The United Kingdom is intensifying its attempts to curb illegal cryptocurrency activities, with a focus on stricter legislation and more efficient enforcement. The Financial Conduct Authority (FCA) has raised the ante on its warnings about unregistered bitcoin firms and illegal investment schemes.
Also Read: UK Cracks Down on Russian Money Laundering Rings, Seizes $25.4M in Cash and Cryptocurrency