How investors lose £27m to crypto, forex scams

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Investors who fall victims to fraudsters with promise of high returns from investments in crypto and forex lost over 27 million pounds in 2018/19.

Action Fraud reports show that on average, victims were each scammed out of £14,600 from forex and crypto scams in 2018/19.

Crypto assests (cryto) and forex investment scams reports more than tripled last year to over 1,800 according to Financial Conduct Authority (FCA) and Action Fraud that warned the public to be wary of investment scams carried out via bogus online trading platforms.

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. This 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.

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