Investors lost over £27m to crypto and forex scams last year
The Financial Conduct Authority (FCA) and Action Fraud are campaigning to raise awareness of cryptoassets and forex investment scams, as it is revealed that over £27 million was lost to fraudsters in 2018-19, reports Jane Connolly.
Tempted by professional-looking social media adverts and websites, investors have been signing up to ‘get rich quick’ online trading platforms – only to find they have been scammed.
In the last financial year, reports of crypto and forex investment scams tripled to 1,800, with the average victim losing £14,600.
The FCA’s ScamSmart campaign, supported by the City of London Police, will be running social media adverts to try and combat the allure of fake platforms, some of which claim to be endorsed by celebrities.
Victims may see a profit on their initial investment, only for the company to disappear once further investments have been made or the victim has persuaded others to join.
“We’re warning the public to be suspicious of adverts which promise high returns from online trading platforms,” says Mark Steward, executive director of enforcement and market oversight at FCA.
“Scammers can be very convincing, so always do your own research into any firm you are considering investing with, to make sure that they are the real deal. Before investing online, find out how to protect yourself from scams by visiting the ScamSmart website and if in any doubt – don’t invest.”
More information can be found on the ScamSmart website.