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British Cryptocurrency Users Lose £2 Million in Two Months to Crypto Fraud According to National Police Project

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A new report was released on Friday that has detailed how British cryptocurrency users have lost a total of GBP 2 million in the past two months to online crypto fraud. As crypto security is coming under attack from all quarters, this latest news shows we have still got a long way to go to tackle crypto-crime.

A project set up by the police unearthed the stats that British cryptocurrency users are having a difficult summer dealing with crypto fraud and dubious ‘quick investment’ Ponzi schemes.

Action Fraud report losses of British Cryptocurrency Users

The U.K. national police project, Action Fraud, has revealed that British cryptocurrency users have lost more than GBP 2 million over the past two months due to crypto fraud. The losses are mainly from scams involving social media channels that are reporting ‘get rich quick’ investment opportunities.

The data was collected by Action Fraud over the months of June and July and showed that the scammed British cryptocurrency users on average lost GBP 11,000 in fake mining transfers and other dubious trading scams online. If someone offers to turn your 0.1 BTC into 1 BTC in one week, it is safe to say you should move with caution.

Although many get caught out from online trading scams where profits on your already-existing bitcoin are promised, it seems that fraudulent mining scams are also quite popular with crypto-criminals. The mining of bitcoin and ether has become very popular, which is why criminals have attacked this sector, offering fake investment opportunities with coins that are presented as high value but in reality are worth next to nothing. This is much different from accounts being hacked because users are being coerced into consensually investing in the mining scams.

U.K. crypto users need to be vigilant

Although the report has brought to the surface the major problems of cyber-crime that British cryptocurrency users are currently experiencing, it is also educating users on what to look out for. The Action Fraud report was released on Friday and is bringing to attention the current state of crypto-crime in the U.K. by stating:

“Fraudsters will convince victims to sign up to cryptocurrency investment websites and to part with their personal details such as credit card details and driving licenses to open a trading account. The victim will then make an initial minimum deposit, after which the fraudster will call them to persuade them to invest again in order to achieve a greater profit.”

Britons filed 203 reports to the Action Fraud project over the past two months, which is located at the national cybercrime reporting center. The report is part of the National Fraud Intelligence Bureau (NFIB) and is connected to the City of London Police.

Pauline Smith, the director of Action Fraud, also talked about the need for British cryptocurrency users to be more vigilant when researching crypto investment opportunities. “It’s vital for anyone who invests or is thinking of investing in cryptocurrencies to thoroughly research the company they are choosing to invest with,”said Smith.

The risks of crypto-crime are becoming well publicized and reports such as this from Action Fraud, are helping British cryptocurrency users to protect themselves online from cyber-criminals who are currently attacking the crypto-sphere.

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