UK: Cryptocurrency scams top fraud cases, regulator issues warning after £200 million losses
07 Feb 2019

Fraudulent schemes involving cryptocurrency firms are among the three most commonly reported scams, according to the Financial Conduct Authority (FCA), which also stated that investments scams resulted in over £197 million of reported losses in 2018.

The FCA on Wednesday urged investors to be vigilant to the threat posed by investment scammers, quoting Action Fraud data which shows that victims were scammed out of over £29,000 on average last year.

“According to data from the FCA call centre, the most commonly reported scams involved investments in shares and bonds, forex and cryptocurrencies by firms that are not authorised by the FCA,” the regulator said.

It added that profile of investment scams is changing, moving away from traditional cold calling to online platforms, such as email and social media.

The watchdog’s statement comes after it announced a consultation into guidance on cryptoassets such as bitcoin.

The FCA has previously issued a number of warnings on investing in cryptocurrency-linked schemes called initial coin offerings.

– Irene Madongo

Read more:

UK financial watchdog warns of initial coin offering risks

Financial crime: UK announces consultation on bitcoin, cryptoassets guidance

Millions in cryptocurrencies frozen after Canadian founder’s death

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