£27 million lost to bitcoin and cryptocurrency frauds last year

The growth of interest in cryptocurrencies has come at a cost. It was reported that online trading scams and fraud have increased by nearly 250% year on year in 2018-19. This scale of losses is eye-watering and amounted to more than £27 million, with an average of almost £15,000 per victim.

Potential victims have been warned to avoid 'get rich quick' schemes. Victims are lured into professional-looking websites by scammers and promised a greater return on investment. Scammers and fraudsters have also used fake images of celebrity endorsers and social media influencers to make their offer appear to be legitimate.

In some cases, they invite victims to risk a small amount of money which they are led to believe has returned a profit.

Victims are then advised to invest more money or refer a friend for larger returns. The money they invest is never returned and in most cases, the scammer closes the account, disappears and has no further contact. Victims have lost thousands of pounds to these types of scammers, and many victims have even referred friends or family members too.

"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 Scam Smart website, and if in any doubt - don't invest." – Mark Stewart, Financial Conduct Authority.

The Financial Conduct Authority is also running a marketing campaign on social media to raise awareness of online scams. It is vital that users online carry out necessary checks or check the Financial Conduct Authority register for authorised firms before handing over any savings or money.

Many of the victims of these scams won't be able to claim their money back as they have consented to send the money across. You can find more information here: www.fca.org.uk/scamsmart.

Mandy Peters Solicitors 

Lewisham