Investors lose £27m to crypto, forex scams
http://www.hrlnews.com/2019/05/investors-lose-27m-to-crypto-forex-scams.html
The Financial Conduct Authority (FCA) and Action Fraud are warning the public to be wary of investment scams carried out via bogus online trading platforms.
This warning comes as cryptoassests (crypto) and forex investment
scams reports more than tripled last year to over 1,800. Fraudsters
promise high returns from investments in crypto and forex, with victims
losing over 27 million pounds in total in 2018/19.
Fraudsters often use social media to promote their ‘get rich quick’
online trading platforms. Posts often use fake celebrity endorsements
and images of luxury items like expensive watches and cars. These then
link to professional-looking websites where consumers are persuaded to
invest.
Investors will often be led to believe that their first investment
has successfully made a profit. The fraudster will then contact the
victim to invest more money or introduce friends and family with the
false promise of greater profits. However, eventually the returns stop,
the customer account is closed and the scammer disappears with no
further contact.
Action Fraud reports show that on average, victims were each scammed out of £14,600 from forex and crypto scams in 2018/19.
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