UK Watchdog Reports $34 Million Loss in Crypto and Forex Scams

UK Watchdog Reports $34 Million Loss in Crypto and Forex Scams

Crypto and Forex Scams

The Financial Conduct Authority (FCA) which is the primary financial regulator of the United Kingdom reported that crypto investors in the country lost over $34 million due to cryptocurrency and forex scams from 2018–2019.

According to the data, which the FCA gathered from the U.K. national fraud and cybercrime reporting center, Action Fraud, individual loss due to scams decreased from $76,000 to $18,500 while total losses fell by $14 million.

The number of reports however more than tripled to reach 1,834, with 81 percent of such reports being crypto scam claims.

According to the report, the FCA is considering a ban on “high-risk derivative products linked to cryptoassets.” FCA executive director Mark Steward said:

“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 reportedly stated that scammers use social media to find potential investors. The regulator also noted that scams will often use pictures of celebrities with fake endorsements alongside imagery of luxury goods like cars and watches.

Remember that new evidence has surfaced suggesting that purported bitcoin (BTC) exchange Goxtrade is a scam. Goxtrade reportedly used the real names and pictures of unaffiliated parties such as blockchain figure Amber Baldet to fill their website staff page.

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