British 'Investors' lost £27million on crypto-scams in last financial year

Josh Peachey's picture

The FCA has revealed that cryptocurrency scams in the last financial year have cost British Investors £27 million. 

The Financial Conduct Authority (FCA) reports that between April 1st 2018 and April 1st 2019, the average loss per victim was £14,600.

The FCA also said that the number of cryptocurrency scams has tripled over the same period last year, going up to 1,800 this year, noting that scammers promote "get-rich-quick" schemes on Twitter and Facebook. 

Social media posts often contain ads for schemes, with fake celebrity endorsements, which redirect users to professional looking websites that encourage people to invest. 

Typically, the scammers make false promises of high returns on investments to lure in their victims. The fraudsters then promise even greater returns on further investments, drawing even more money out of the investors.

The FCA is joining forces with Action Fraud, a consumer fraud helpline, to run an advertising campaign to raise awareness of fake cryptocurrency investments. 

In Belgium, the Financial Services and Markets Authority has a blacklist of over 100 sites which are known to dupe visitors into crypto-scams.