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Crypto and Forex Scam Stole $34 Million from Investors in 2018, UK Main Financial Regulator Claimed

By Anne W. | May 22, 2019
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Crypto and Forex Scam Stole $34 Million from Investors in 2018, UK Main Financial Regulator Claimed

The Financial Conduct Authority (FCA) – the main regulatory body for finance in the UK – revealed that crypto and forex scams have cost investors there over $34 million worth of financial damage during the last financial year.

The report – which contains information provided by- the U.K. national fraud and cybercrime reporting center – showed that loss per victim caused by scams has witnessed a sharp incline, with figures dropping from $76,000 to $18,500. At the same time, total losses decreased to $14 million, according to the Financial Times on May 20th.

However, the total number of scams reported has experienced a three-fold increase, currently standing at 1,834, with around with 81 percent of which are reportedly crypto scams.

The report further noted that the FCA is planning to establish a ban regarding the  “high-risk derivative products linked to crypto assets.” Nonetheless, for the time being, Mark Steward – executive director at FCA – is only urging individuals and businesses to run a thorough background check before deciding to place their assets into any investing endeavors.

“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.”

The FCA also claimed that social media is one of the most popular methods for such fraudulent criminals to look for their potential preys. The FCA further specified that photographs of renowned individuals, pictures of luxurious items such as cars or watches, along with their false support of the scheme, will be used to trick people into investing.

Recently, at a gathering in Chicago, traders from 35 digital assets firms have reportedly gathered and discussed a blacklist naming parties who engaged in dubious activities. Participants include trading firm DRW Holdings Inc.’s Cumberland crypto unit, Mike Novogratz’s Galaxy Digital Holdings, and tech startup Ripple, etc.

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